MARKET POWER AND COLLUSION IN THE OCEAN SHIPPING INDUSTRY: IS A BIGGER CARTEL A BETTER CARTEL?

The regulatory structure of the ocean shipping industry allows carriers to enter into joint pricing agreements (conference agreements) that are free from antitrust scrutiny, and requires freight rates to be published and policed by a government agency. We test whether this regulatory structure leads to the exercise of market power, and identify whether that market power resides with conferences themselves or requires the participation of carriers outside the conference. The results suggest that liner conferences are not particularly effective cartels although some market power may exist in ocean shipping. Market concentration may be a contributing factor to this market power. (JEL L12, L43, L92, K21)     

THE TAXPAYER RELIEF ACT OF 1997 AND HOMEOWNERSHIP: IS SMALLER NOW BETTER?

Prior to the Taxpayer Relief Act of 1997 (TRA97), the capital gain from the sale of a home was taxed differently for those over and under the age of 55. TRA97 eliminated this differential treatment. Using a difference‐in‐difference approach, we find that home sellers slightly under the age of 55 were 6.2% more likely to move for a less expensive house to maintain, 6.6% less likely to move for a larger place, and 5.2% more likely to reside in a condominium after TRA97's enactment, relative to those slightly over 55. (JEL H24, R21)     

DO BETTER INFORMED INVESTORS ALWAYS DO BETTER? A BUYBACK PUZZLE

We explore the value of private investment information using data from a singular source: auctions of yearling racehorses. Horse breeders possess superior information about their own horses and have strong financial incentives to buy the best of these back at auction. However, those they repurchase subsequently perform significantly worse on average, earning 30% less at the racetrack than horses purchased by outsiders. Moreover, this underperformance is concentrated in male horses, despite these being purchased exclusively for racing purposes. These puzzling findings cannot be explained by differences in horse risk or breeder abilities, or by nonfinancial objectives, or by behavioral or selection biases. (JEL G02, G11, G14, L83, D44)     

VIRTUAL COMMUNITY CARE? SOCIAL POLICY AND THE EMERGENCE OF COMPUTER MEDIATED SOCIAL SUPPORT

This article argues that the emergence and growth of internet use in Britain has important implications for the analysis of social policy. It attempts to outline a research agenda for social policy in relation to one particular aspect of internet use, that of on-line self-help and social support - what we term here virtual-community care . The article presents data on patterns of home based internet use in Britain and outlines some contemporary debates in social policy about the importance of self-help and social support. It also considers how the internet is being used for self-help and social support with a particular emphasis on the emerging situation in Britain. Three illustrations of on-line self-help and social support are presented: two from newsgroups, which are part of the 'uk.people.* hierarchy': one concerned with disability and one with parenting issues; and one web based forum concerned with issues surrounding mortgage repossession. Drawing upon this illustrative material the article discusses some emergent issues for contemporary social policy discourse: the rise of self-help groups; the privileging of lay knowledge and experience over the 'expert' knowledge of health and welfare professionals; the nature of professional-client relationships; the quality and legitimacy of advice, information and support; dis/empowerment; and social exclusion.     

CENTRALIZED OR DECENTRALIZED INFORMATION: WHICH IS BETTER FOR PROVIDING INCENTIVES?

A risk‐neutral ruler must invest in improving the quality of his country's infrastructures. Higher quality infrastructures increase the profitability of capital investment by foreign entrepreneurs. The ruler wishes to maximize the amount of capital investment that flows into the country. Before selecting their investment, entrepreneurs receive a signal on the quality of infrastructures. We consider two cases. First, all entrepreneurs observe the same signal (centralized information). Second, each entrepreneur receives an independently drawn signal (decentralized information). We compare the effectiveness of these two scenarios for incentivizing the ruler. We find remarkably clear‐cut results. When the entrepreneurs’ investments are strategic complements, centralized information does a better job in incentivizing the ruler. The opposite holds when investments are strategic substitutes. This may help understand the role of media, rating agencies, public announcements, and ambiguity. (JEL D82, D62)     

IS MORE COMPETITION ALWAYS BETTER? AN EXPERIMENTAL STUDY OF EXTORTIONARY CORRUPTION

Using a laboratory experiment, we assess whether increasing competition among public officials reduces extortionary corruption. We find that increasing the number of providers has no effect on bribe demands when citizens' search costs are high, but it increases corruption when search costs are low. The effect is absent in a parallel setting framed as a standard market, which we attribute to citizens using a nonsequential search strategy as opposed to sequential search in the corruption setting. We conclude that efforts to reduce search costs, such as infrastructure investments, are preferable to anti‐corruption policies aimed at increasing the number of providers. (JEL D73, D49, C91)     

HOW DO POLITICAL OPPORTUNITIES MATTER FOR SOCIAL MOVEMENTS?: Political Opportunity,Misframing, Pseudosuccess,and Pseudofailure

A longitudinal case study of Korean white-collar labor movements, which newly thrived in the democratizing atmosphere after the 1987 June Democratic Struggle, confirms that political opportunity is an important external factor that impels movement dynamics toward political protest and interunion solidarity. However, the impact of political opportunity is more complicated than the political process model suggests. First, it is not objective but perceived opportunity that is causal for movement dynamics: Opportunity is filtered through participants' interpretations, which shape their responses to it. The effect of political opportunity is mediated by participants' subjective conclusion (often inaccurate) that a movement goal has been promoted or obstructed by a particular source (source attribution). Without this framing mediation, the impact of political opportunity remains indeterminate, as a single opportunity structure may produce disparate movement dynamics and, conversely, movements may mobilize under both contracting and expanding opportunities. Second, the causal impact of perceived opportunity–whether perceived contraction or expansion–is contextually specific and contingent. When union members consider their attempts to achieve goals a failure and ascribe the failure to government intransigence, anti-government sentiments facilitate political protest. In contrast, success attributed to the efficacy of collective action nurtures solidarity consciousness and labor collectivity. In either event, movement dynamics improve.     

ARE SMALL FIRMS MORE BEAUTIFUL OR IS BIGGER BETTER? A Study of Compensating Differentials and Law Firm Internal Labor Markets

Research on the size–job rewards relationship emphasizes extrinsic rewards that are typically more prevalent in large, complex organizations. We examine whether certain intrinsic rewards are more characteristic of small firms and shift the focus from manufacturing industries to professional service (law) firms. We find that small is not entirely beautiful. Smaller firms offer more autonomy but no more challenging work or better coworker relations, whereas larger firms offer lucrative salaries, enhanced benefits, and greater promotional opportunities. Our results challenge the compensating differential explanation whereby large firms offer superior extrinsic rewards to compensate for a shortfall of instrinsic job rewards.     

‘WE ARE SCATTERED LIKE SEEDS AND THE WORLD IS FULL OF US’ (N. A. FROM AFGHANISTAN)1

This article does not have an abstract     

WHATEVER HAPPENED TO SOCIAL PATHOLOGY? CONCEPTUAL FASHIONS AND THE SOCIOLOGY OF DEVIANCE

Social scientific concepts go in and out of fashion. Social pathology was once a popular title for undergraduate sociology courses and textbooks, but it fell out of favor about fifty years ago. Similarly, there is evidence that fewer contemporary sociologists are using the concept of deviance in their analyses. This article sketches a natural history of sociological concepts that denote categories of troubling conditions; it argues that such concepts pose definitional problems that make them pedagogically helpful but analytically problematic.     

ARE WORKERS WILLING TO PAY TO JOIN A BETTER TEAM?

Using data from the Major League Baseball free‐agent market, this study is the first to show that the productivity expected of the team a worker will join produces a significant, negative compensating wage differential. The younger workers in the sample drive this result, trading 25% of their wages to join teams with an expected productivity one standard deviation higher. This investment can be recouped if a reasonable increase in human capital occurs. These results are robust to contract length‐wage simultaneity and indicate that investment in human capital motivates the observed tradeoff, suggesting a new pathway through which human capital accumulation can affect wages. Reliable measures of workers' own past productivity and the productivity expected of a worker's future team provide key advantages to identifying these effects. (JEL J31, J24, M54)     

FIRM SURVIVAL,UNCERTAINTY, AND FINANCIAL FRICTIONS: IS THERE A FINANCIAL UNCERTAINTY ACCELERATOR?

Using a large panel of unquoted UK firms over the period 2000–2009, we examine the impact of firm‐specific uncertainty on corporate failures. In this context we also distinguish between firms which are likely to be more or less dependent on bank finance as well as public and nonpublic companies. Our results document a significant effect of uncertainty on firm survival. This link is found to be more potent during the recent financial crisis compared with tranquil periods. We also uncover significant firm‐level heterogeneity because the survival chances of bank‐dependent and nonpublic firms are most affected by changes in uncertainty, especially during the recent global financial crisis. (JEL E44, F32, F34, G32)     

DOES RELATIVE THINKING EXIST IN REAL‐WORLD SITUATIONS? A FIELD EXPERIMENT WITH BAGELS AND CREAM CHEESE

Many experiments show that consumers consider relative price differences even when only absolute price differences are relevant from an economic perspective, a phenomenon that was denoted “relative thinking.” These experiments, however, were conducted using hypothetical questions. To test whether the relative thinking bias also exists in real‐world situations, a field experiment where subjects could purchase either a bagel or a bagel with cream cheese was conducted. The monetary addition for the cream cheese was kept constant ($0.20) in both treatments, but the bagel's price varied ($0.05 in one treatment and $0.30 in the other). Relative thinking then implies that more people should add the cream cheese when the bagel's price is higher, because the relative price increase for the cream cheese is then smaller. However, the results did not document any relative thinking—more people (in percentage of those who purchase) added the cream cheese when the bagel's price was lower (the difference between the treatments, however, was not statistically significant). A replication of the experiment as a hypothetical‐scenario experiment did document relative thinking, suggesting that introduction of financial incentives might alleviate relative thinking. (JEL C93, D01, D10, L00, M31)     

IS BOWEN THEORY VALID? A REVIEW OF BASIC RESEARCH

In the last 15 years, a substantial number of studies have tested the theoretical validity of Bowen family systems theory. A review of this basic research provided empirical support for the relationship between differentiation and chronic anxiety, marital satisfaction, and psychological distress. Bowen's assumption that couples with the same level of differentiation marry was not supported. His specific theories of sibling position and triangulation also received little empirical support. Research on multigenerational transmission has generally ignored Bowen's theoretical perspective, and more research needs to test Bowen's claim that his theory is universal. In addition, researchers still need to examine the effect of differentiation on child functioning, physical health problems, and adaptability.     

IS ECONOMICS A HOUSE DIVIDED? ANALYSIS OF CITATION NETWORKS

We investigate divisions within the citation network in economics using citation data between 1990 and 2010. We consider all partitions of top institutions into two equal‐sized clusters and pick the one that minimizes cross‐cluster citations. The strongest division is much stronger than could be expected to be found under idiosyncratic citation patterns and is consistent with the reputed freshwater/saltwater division in macroeconomics. The division is stable over time but varies across the fields of economics. (JEL A11, D85, I23)     

IS THERE SUCH A THING AS AN ONLINE HEALTH LIFESTYLE?

The purpose of this paper is to examine the use of the Internet for health-related purposes and whether this usage is part of larger pattern of health-promoting behaviors, or health lifestyle. Pierre Bourdieu's concept of habitus provides the key theoretical concept that links health lifestyle and the digital inequality framework to explain how social conditions (i.e. social status and quality of Internet access) influence attitudes and behaviors. Path analysis is used to examine the relationship between key endogenous variables on attitudes, health behavior, health status, and online health-related activities, while controlling for demographics and other factors. Data comes from the National Cancer Institute's 2007 Health Information National Trends Survey. The results demonstrate that online health behaviors can be usefully conceptualized as elements of health lifestyle. The combination of health lifestyle and digital inequality provides a broader theoretical framework that highlights the importance of social conditions to influence people's Internet habitus and routine health-promoting behaviors. The combination of health lifestyle and digital inequality provides a useful theoretical framework for future research investigating persistent social disparities in health and the potential for the growing reliance on information and communication technologies to contribute to socially patterned health outcomes.     

WHAT IS THE PROBABILITY YOUR VOTE WILL MAKE A DIFFERENCE?

One of the motivations for voting is that one vote can make a difference. In a presidential election, the probability that your vote is decisive is equal to the probability that your state is necessary for an electoral college win, times the probability the vote in your state is tied in that event. We computed these probabilities a week before the 2008 presidential election, using state‐by‐state election forecasts based on the latest polls. The states where a single vote was most likely to matter are New Mexico, Virginia, New Hampshire, and Colorado, where your vote had an approximate 1 in 10 million chance of determining the national election outcome. On average, a voter in America had a 1 in 60 million chance of being decisive in the presidential election. (JEL H0)     

GATEKEEPING IN FIELD PERFORMANCE: IS GRADE INFLATION A GIVEN?

This field note presents the results of a pilot study that explored the use of a new non-numerically rated field performance tool, a vignette matching measure for MSW students. Evaluation of performance in the field has proved to be a difficult task because few if any measures, including competency-based measures, have known levels of reliability and validity. Field instructors rated a sample of 154 students. Over half of the students were rated as exceptional, which may support the long-standing notion that performance ratings are inflated. Implications for social work education and research are discussed.     

SOCIAL WORK EDUCATION: THE AVAILABILITY OF ALCOHOL‐RELATED COURSE CURRICULUM AND SOCIAL WORKERS' ABILITY TO WORK WITH PROBLEM DRINKERS

An explanatory cross‐sectional investigation was employed to assess how well masters‐level social work (MSW) programs in the State of New York prepare students for practice with problem drinkers. The following areas were explored: (1) the incorporation of alcohol‐related coursework and field placement opportunities within MSW programs; (2) the relationship between students' completion of alcohol‐related courses and field placements and their subsequent ability to diagnose clients with alcohol problems, their willingness to work with problem drinkers, and their levels of alcohol‐related knowledge; and (3) subjects' levels of alcohol‐related knowledge in relation to their diagnostic ability and their willingness to work with problem drinkers. The sample consisted of 89 MSW‐level social work practitioners, who were active members of the New York State Chapter of the National Association of Social Workers (NASW) during the fall of 2005. Fewer than 3% of the sample reported the completion of an alcohol‐related course as a mandatory degree requirement and only 29.5% of the sample acknowledged the completion of an alcohol‐related field placement. These findings suggest that a possible gap exists in what social workers are being taught and what they need to know to successfully work with problem drinkers. The findings indicate that clients with alcohol problems are at risk of going untreated due to social workers' inability to correctly diagnose them as a result of insufficient training in the area of alcohol studies.     

IS LOVE BLIND? THE EFFECTS OF EXPERIENCE AND INFATUATION ON THE PERCEPTION OF LOVE

We hypothesized that participants in love and more experienced in romantic love (e.g., schematics) would perceive love more accurately than those who were not in love and less experienced. Judges viewed and rated a series of 25 thin-slice video clips of couples for whom their love for another was known via Sternbergs (Psychological Review, 93, 119–135) love scale. Individual differences in love judgment accuracy were large. Not surprisingly, participants who were in love at the time of the study and who reported having had a lengthy romantic relationship were more confident in their love judgment accuracy but, in fact, were less accurate. Apparently the love schemas people develop subjectively may not adequately represent the way in which the construct manifests among the population in general. Although love judgments may come easier to those in love, their perceptions of the love around them may be biased and inaccurate.