ALTERNATIVES FOR RESTRUCTURING THE RAILROADS: END-TO-END OR PARALLEL MERGERS?

The U.S. railroad industry has seen considerable merger activity over the past two decades and more mergers are expected in the near future, but little is presently known about the relative social benefits of alternative merger configurations. Using traffic data for origin-destination pairs affected by recent mergers, this paper examines the impact of end-to-end and parallel mergers on increases in the market share of merged firms. To the extent that increases in market share reflect social benefits in the form of improved service and lower costs, end-to-end mergers are found to outperform parallel mergers.     

FIGHT,FOLD OR SETTLE?: MODELLING THE REACTION TO FTC MERGER CHALLENGES

This paper models the reaction of firms to Federal Trade Commission (FTC) decisions which seek to block proposed horizontal mergers. We find that firms' responses to the FTC's decisions depend on a number f factors, but only weakly on the structural merits of the FTC's challenge. For a large number of the FTC's merger challenges, we find that firms have strong incentives to settle with the Commission, regardless of the relevant competitive concerns. Therefore, in these matters the FTC appears to have powers more like a regulatory agency than a prosecutor.     

CONVEX COSTS AND THE MERGER PARADOX REVISITED

Returning to the contention that convex costs provide a resolution to the merger paradox, we show that for reasonable degrees of convexity, the minimum market share needed for merger to be profitable remains close to that associated with linear costs. Moreover, convex costs do not eliminate the free rider problem identified as part of the merger paradox. Finally, we retain convex costs while modeling a firm-by-firm sequential merger process, showing that the paradox constrains a larger share of potential mergers. These findings help reduce the relevance of convex costs as a resolution to the merger paradox. ( JEL L12, L13)     

THE TRANSFORMATION OFTHE DOMINANT CORPORATE FORM FROM MULTIDIVISIONAL TO MULTISUBSIDIARY:

In 1986 the dominant form of the Fortune 500 industrial corporation changed from the multidivisional form (MDF) to the multisubsidiary form (MSF) (Zey and Camp 1996). We examine two major organizational perspectives (historical managerialism and agency theory) and an alternative perspective, the political economy contingency theory of capital accumulation (PECTA), to explain the transformation of Fortune 500 corporate form from MDF to MSF. Using event history analysis, we analyze data from 1981–1995 to define the covariates of this change, thereby predicting the risk of change to the now dominant MSF. The historical managerialism model considers assets as an indicator of size, operating profit margin as an indicator of efficiency, and return on sales as an indicator of profitability. The two major variables of the agency theory model are cash flow and debt-to-equity ratio. The alternative PECTA model considers tax savings resulting from changes brought about by the Tax Reform Act of 1986, percentage of shares held by institutional investors, shareholder return on equity, production-to-administrative intensity, dollar amount of acquisitions, and dollar amount of divestitures. Controlling for the natural log of gross assets, which has the strongest relationship to risk of transformation in dominant form from MDF to MSF, we found that the percentage of shares held by institutional investors, the sum of tax-free transactions (spin-offs, split-offs, and stock swaps), the total merger and acquisition activity, and the two-year lagged difference in the rate of first-level subsidiarization all had significant effects on the transformation of corporate form from the MDF to the now dominant MSF.     

HORIZONTAL MERGERS IN THE PRESENCE OF CAPACITY CONSTRAINTS

We examine a merger between two competitors in a Bertrand‐Edgeworth model. We find that the effects of merger depend on the tightness of capacity constraints. The combination of two firms has no price effect if and only if the capacity constraints of all firms are binding both before and after the merger. However, a merger may turn a binding capacity constraint into a slack one, which results in higher prices. In an industry where excess capacity drives the premerger prices of all firms to the marginal cost, a merger may cause prices to rise even though aggregate capacity remains constant. (JEL L13, L40)     

Linking an agency strategic review to increase knowledge management: San Francisco County Human Service Agency

Led by the agency director, the agency engaged in a Strategic Review, based on a comprehensive assessment of agency performance that identified strategies to improve organizational effectiveness through increased data-informed practice and knowledge management. The Strategic Review gathered information on staff perceptions, perceptions of external stakeholders, changing citywide and neighborhood demographics, policy mandates, and budget and workload issues. The need for the review was based upon multiple, substantial changes not addressed in the 2000 Strategic Plan, including the 2004 merger of the Department of Human Services and the Department of Aging and Adult Services, changes among the executive management team, transitions among key political entities, new policy mandates and changing budget allocations. This case study describes the Strategic Review process and content, summarizing key challenges and lessons related to addressing workload demands, fostering positive staff attitudes, balancing internal and external information needs, and integrating data use and planning processes across the agency.     

The significance of meaning. Why IPBES needs the social sciences and humanities

The term “biodiversity” is often used to describe phenomena of nature, which can be studied without a reference to the socially constructed, evaluative, or indeed normative contexts. In our paper, we challenge this conception by focusing particularly on methodological aspects of biodiversity research. We thereby engage with the idea of interdisciplinary biodiversity research as a scientific approach directed at the recognition and management of contemporary society in its ecological embedding. By doing this, we explore how research on and assessments of biodiversity can be enhanced if meaning, aspiration, desires, and related aspects of agency are methodically taken into account. In six sections, we substantiate our claim that the discourse on biodiversity (including the IPBES (Intergovernmental science-policy Platform on Biodiversity and Ecosystem Services) debate) is incomplete without contributions from the social sciences and humanities. In the introduction, a brief overview of biodiversity’s conceptual history is provided showing that “biodiversity” is a lexical invention intended to create a strong political momentum. However, that does not impede its usability as a research concept. Section 2 examines the origins of the Convention on Biological Diversity (CBD) by way of sociological discourse analysis. Subsequently, it proposes a matrix as a means to structure the ambiguities and tensions inherent in the CBD. The matrix reemphasizes our main thesis regarding the need to bring social and ethical expertise to the biodiversity discourse. In Section 3, we offer a brief sketch of the different methods of the natural and social sciences as well as ethics. This lays the groundwork for our Section 4, which explains and illustrates what social sciences and ethics can contribute to biodiversity research. Section 5 turns from research to politics and argues that biodiversity governance necessitates deliberative discourses in which participation of lay people plays an important role. Section 6 provides our conclusions.     

Delivered Pricing and Merger with Demand Constraints

The consequences of a demand constraint (low willingness to pay) are examined in a model of merger by spatial price discriminators. The imposition of a demand constraint reduces the extent of inefficiency associated with merger and also eliminates the resolution of the merger paradox obtained in the earlier, unconstrained case. Moreover, with the introduction of a demand constraint, a tax on transport cost can actually improve efficiency, which is never the case in the absence of the demand constraint. Indeed, the optimal tax often eliminates all spatial price competition by creating local monopolies.     

EMPIRICAL EVIDENCE ON FTC ENFORCEMENT OF THE MERGER GUIDELINES

The Justice Department's 1982/1984: merger guidelines identify various factors – concentration, entry barriers, ease of collusion, efficiency –that would thereafter determine whether the government will challenge a merger. Analysts have criticized enforcement agencies, however, for not following the guidelines, and criticize the guidelines themselves for not identifying the weights attached to the factors. Using a 1982-86 sample of seventy horizontal mergers, we examine which factors influenced Federal Trade Commission decisions to challenge mergers. The relative importance of the guidelines and other factors in merger challenges is measured, and related empirical issues are also explored.     

Institutional change from within the informal sector in Indian rural labour relations

The paper applies a theory of institutional change enriched with mezzorules, fluidity and agency to India's informal sector institutional evolution using two illustrative examples. The concrete examples are rooted in unfree labour and rural casual labouring in India, a country which has a high degree of informality. Section 1 introduces some concepts, and section 2 examines processes of institutional change in the informal sector. In section 3, two illustrations are explored: (1) the norms for girl child bonded labour; (2) the individualisation of women labourers. Section 4 concludes. The fluidity of institutional rules demands a recognition of the supra-economic nature of the context within which economic-institutional change occurs. We propose the analysis of mezzorules in a dialogic research context, i.e. interactions among workers and collective agents – as a helpful and transformative approach for sociologists specialising in the informal economy.     

Hospital Mergers

Abstract

When secular and sectarian (often Catholic) hospitals merge, women's reproductive healthcare services are often put in jeopardy. Some merger efforts are successful and others fail. Several issues arise as a result of this situation. First, what role do women's reproductive rights activists and their supporters play in effecting hospital merger decisions? This question does not assume that all women support women's rights organizations or that all women support a full range of reproductive rights. Secondly, what other factors seem to effect the outcome of merger discussions? In order to answer these questions, it is first necessary to understand the extent of Catholic hospital expansion and the nature of the hospital merger movement itself. These considerations will provide perspective for the two case studies of the American hospital merger movement that provide venues for examining the issues relating to participation and other factors that effect the outcome of merger talks. Cumberland and Baltimore are the two communities examined in this study. Though it would be a mistake to generalize to all merger situations based on these two cases, there are lessons that women's reproductive healthcare advocates can learn from the experiences of these two communities.

The issue of hospital mergers and the availability of reproductive healthcare services for women does raise an additional issue. Private sector decisions are being made that have a direct impact on public services, that is, the availability of a set of healthcare services in communities. This is not the direction that most public policy analysts consider.

The more frequently asked policy questions begin with public policy decisions and ask how they influence non-governmental decisions.     

Principals and Agents: An Investigation of Executive Compensation in Human Service Nonprofits

This study proposes a revised agency theory for the nonprofit sector, distinguishes between the extent of agency and the extent of monitoring, and compares the magnitudes of the two impacts. Using panel data for 1998–2003, the paper tests whether monitoring by principal-stakeholders such as donors, clients, the government, and the board reduces the opportunity for executive misconduct such as extravagant spending on compensation and perquisites. Given the theory, the findings show that two effects influence CEO salaries. First, while nonprofit endowments provide a fiscal cushion in tough financial situations, by offering “organizational slack” they also increase the CEO’s opportunity to steal or raise her compensation (i.e., agency effect). Second, donors utilize monitoring mechanisms such as auditing or direct observations, which limit the opportunity for misconduct and reduce executive pay (i.e., monitoring effect). In the final analysis, the monitoring effect is greater than the agency effect, which implies that even if agency problems are present, the monitoring that donors provide offsets them.     

Exploring issues of children as actors in social research

In recent years, there has been an increasing focus among childhood researchers on the concept of children's agency, or children as social actors, within research. The argument for the focus on children as ‘agents’ has commonly critiqued an earlier dominant tradition of research, whereby children had been positioned as passive objects of investigation, with their capacity for social agency largely ignored.This paper provides a theoretical and methodological exploration of the concept of children's agency in the research process. The authors outline conceptual developments that have contributed to the increased focus on children's agency and discuss how this focus has influenced research methods, both in terms of counting children in and researching collaboratively with them. Key elements of a methodological framework for promoting children's agency in collaborative research are outlined and some of the contextual obstacles to the implementation of this framework are discussed, in particular those encountered in attempting to ‘balance power relations’ between adults and children. The facilitation by adults of children themselves as researchers is identified as a possible way forward.The paper concludes with a brief discussion on the extent to which the acknowledgement of children's agency in research may lead to more inclusive policy practices.     

New ways of looking at management information systems in human service delivery

The functional aspects of management information systems (MIS's) in human-service delivery agencies are critically examined from the viewpoint of a behavioral systems analysis model. This model distinguishes between MIS as an information-gatherer and as a system to control agency behavior and administrative decision-making. The choice of a particular MIS involves the consideration of the agency 's informational objectives, the extent to which the MIS exerts control over the decision-making process, and its cost-effectiveness. The behavior-analytic approach to MIS requires an evaluation of the way in which the system affects the behavior of agency personnel and, ultimately the clients.     

Does the client have a gambling problem?

Representatives from 40 New York City social agencies were interviewed in order to determine the extent to which gambling is a problem among their clients. The findings indicate that (a) agency personnel rarely ask clients about gambling behavior either on intake or with continued agency contact; (b) rarely do clients spontaneously mention gambling as a problem; (c) problem gambling is usually brought to the attention of the agency by the wives of problem gamblers; and (d) gambling is a hidden family problem associated with marital discord and financial disarray. In order to have a better understanding of problem gambling and its vicissitudes it is recommended that agency personnel keep statistics on gambling and gambling related problems.This paper was revised after the untimely death of Leonard S. Kogan, Professor of Psychology and Director of the Center for Social Research, The Graduate School and University Center, The City University of New York.     

NEW SOCIAL MOVEMENTS,POPULISM AND THE POLITICS OF THE LIFEWORLD

Since the 1960s, New Social Movements (NSMs) have been prominent as new actors on the political scene. But, by comparison with other radical political agents, they have made a relatively poor showing in mainstream political theory. Habermas, for example, criticizes NSMs, including second-wave feminism, for merely masquerading as new forms of radical political agency. By introducing some ideas from Laclau, I show how to counter Habermas's criticism. I then rethink NSMs as a new post-liberal form of democratic-emancipatory political agency, which by contrast with the politics of the public sphere that Habermas champions, is anchored in the less organized reaches of the lifeworld.     

California’s Title IV-E Partnership: A Statewide University–Agency Collaboration—Characteristics and Implications for Replication

University–agency partnerships funded by Title IV-E encourage students to enter the child welfare field by providing student stipends, thus supporting child welfare agency workforce development. This article examines the literature and historical roots of Title IV-E and other partnerships, identifies common structures and outcomes, and discusses the extent to which a structured development and change process supports the California partnership’s core mission to integrate the education and practice communities in child welfare. The partnership is teleological in nature, using a social exchange approach to advance mutuality and a full spectrum of benefits for universities and agencies. Models and best practice elements are presented as examples of how university–agency partnerships may enhance child welfare service delivery.     

THE IMPACT OF MERGERS ON FARES STRUCTURE: EVIDENCE FROM EUROPEAN LOW‐COST AIRLINES

This paper examines mergers that lead to an almost immediate replacement of the target firm's business model in favor of that of the acquiring firm. We examine the post‐merger behavior of the two leading European dedicated low‐cost airlines, EasyJet and Ryanair, each acquiring another low‐cost airline, Go Fly and Buzz, respectively. We find that both takeovers had an immediate and sustained impact on both the pricing structures and the extent of intertemporal price schedules used on the acquired routes, with early booking fares noticeably reduced and only very late booking fares increased. The analysis suggests that the takeovers had a net beneficial effect for consumers, at least in price terms, as a consequence of the introduction of the acquiring firms' business models and associated yield management pricing systems. (JEL L11, L13, L93)     

A NOTE ON THE THEORY OF BLACK MARKETS UNDER PRICE CONTROLS

In a recent article in this Journal Browning and Culbertson (hereafter B-C) extended the theoretical investigation of the predicted effects of maximum price controls to the competitive firm and deduced an excess capacity result. In this note we extend their analysis to derive long-run adjustment paths for the industry for changes in market demand or control prices. The importance of such an extension is that the relevant industry adjustment path is different depending on whether one considers changes in the control price through such mechanisms as cost pass-throughs or through changes in industry demand. To make this extension meaningful, however, we must first consider the link between the firm and market diagrams in B-C's model. Section I is devoted to the analysis. Section II offers some concluding remarks.     

VICTIMHOOD,IDENTITY, AND AGENCY IN THE EARLY PHASE OF THE TROUBLES IN NORTHERN IRELAND

This article explores the representation of victimhood in political discourse and the relation between victimhood, identity, and political agency. The empirical material is drawn from the early days of the Northern Ireland conflict and covers the debate on internment that was in operation from August 1971 until December 1975. Both those supporting and those opposing internment drew on images of victimhood—images that were vital in the construction of legitimacy and political agency. First, the rendering of detailed stories of individual suffering and victimhood produced compassion and empathy—features legitimising the different approaches. Second, the construction of victimhood involved mechanisms of inclusion and exclusion, creating “we-them” dichotomies, producing “collectives of victimhood,” which in many cases worked as a platform from which political agency could be voiced. And third, the construction of victimhood produced political truths. The victim was given a particular status embodying a particular moral integrity to determine the truths about “what had really happened,” a status that made the victim a vital agent in the political battle for “the hearts and minds.” The article stresses the importance of studying the representation of victimhood within particular historical contexts and demonstrates the complex and ambiguous effects of the representations of victimhood in violent political conflicts. The examination shows that victimhood has both humanising and dehumanising effects and, depending on the contextual framework, victimhood can create confidence, empowerment, and agency, but also disempowerment and passivity.