CANDY ELASTICITY: HALLOWEEN EXPERIMENTS ON PUBLIC POLITICAL STATEMENTS

We conducted experiments during trick‐or‐treating on Halloween in a predominantly liberal neighborhood in the weeks preceding the 2008 and 2012 presidential elections. We decorated one side of a house porch with McCain material in 2008 (Romney material in 2012) and the other side with Obama material. Children were asked to choose a side, with half receiving the same candy on either side and half receiving more candy to go to the McCain/Romney side. This yields a “candy elasticity” of children's political support. Results vary by age: children ages nine and older were two to three times more likely to choose the Republican candidate when offered double candy for voting Republican compared to when offered equal candy, whereas children ages eight and under were particularly sticky and did not waver in their choice of candidate despite the offer of double candy. (JEL C93, D72, D12)     

Figured Worlds in the Field of Power

This article seeks to deepen our understanding of how structural relations of power should be understood in local accounts of activity and identity. Thus, we critically review the synthesis of Bourdieu and activity theory in Figured Worlds, analyzing two critiques of Bourdieu: his insufficient localism and his overemphasis on embodiment of habitus. We are left with Bourdieu’s overwhelming concern to explain how the field of power is locally refracted and critique its doxa in a field of opinion, while arguably doing so at the expense of imagination, self-authoring, and world making. We conclude with our own suggestions of a synthesis.     

Does vertical diversification create superior value? Evidence from the construction industry

The discussion of diversification discounts is one of the most controversial in corporate finance and strategic management. We are eager to reexamine this issue from the standpoint of vertical versus lateral diversification, and horizontal growth through construction industry M&A. We build on previous evidence of positive acquirer abnormal returns for vertical M&A, and we add new insight into stock return risk. Considering the high idiosyncratic risk levels of builders, we expect to find considerable informational content in systematic risk (beta) behavior, which has been neglected to date. In fact, we find that vertical M&A experience a negative asset beta shift, lateral M&A experience an increase in systematic risk, and only horizontal M&A exhibit no risk changes. Hence, our evidence on risk and previous evidence on return-induced wealth creation through vertical M&A shows that related industrial diversification is superior to unrelated—at least in the construction industry.     

Agency Problems and Airport Security: Quantitative and Qualitative Evidence on the Impact of Security Training

We analyze the issue of agency costs in aviation security by combining results from a quantitative economic model with a qualitative study based on semi‐structured interviews. Our model extends previous principal‐agent models by combining the traditional fixed and varying monetary responses to physical and cognitive effort with nonmonetary welfare and potentially transferable value of employees' own human capital. To provide empirical evidence for the tradeoffs identified in the quantitative model, we have undertaken an extensive interview process with regulators, airport managers, security personnel, and those tasked with training security personnel from an airport operating in a relatively high‐risk state, Turkey. Our results indicate that the effectiveness of additional training depends on the mix of “transferable skills” and “emotional” buy‐in of the security agents. Principals need to identify on which side of a critical tipping point their agents are to ensure that additional training, with attached expectations of the burden of work, aligns the incentives of employees with the principals' own objectives.     

Ambiguity in the Cross-Section of Expected Returns: An Empirical Assessment

This article estimates and tests the smooth ambiguity model of Klibanoff, Marinacci, and Mukerji based on stock market data. We introduce a novel methodology to estimate the conditional expectation, which characterizes the impact of a decision maker’s ambiguity attitude on asset prices. Our point estimates of the ambiguity parameter are between 25 and 60, whereas our risk aversion estimates are considerably lower. The substantial difference indicates that market participants are ambiguity averse. Furthermore, we evaluate if ambiguity aversion helps explaining the cross-section of expected returns. Compared with Epstein and Zin preferences, we find that incorporating ambiguity into the decision model improves the fit to the data while keeping relative risk aversion at more reasonable levels. Supplementary materials for this article are available online.     

Social capital and community building through an electronic network

This paper describes a social policy experiment that explores current and potential links between trends in Australian public policy. The central example is provided by the implementation of a wired community set up in a low‐income public housing estate by an entrepreneurial not‐for‐profit internet service provider, InfoXchange. ‘Reach for the Clouds’, the wired community being established at Atherton Gardens in Fitzroy, Melbourne, is attractive to policy‐makers and funding bodies, combining community‐building, public‐private partnerships, self‐help and place‐based management. However, although the project is promoted as an exercise in community‐building through technology, many of the key assumptions are untested. It seems self‐evident that low‐income people who are socially and economically excluded would benefit from greater ‘connectedness’ with one another. However, it is not clear that such exchanges, online or off‐line, will build ‘community’. The paper attempts to establish some distinctions between online communities of interest and place based communities, untangling the relationship between social connectedness and models of social capital.     

Urban community in China: service, participation and development

With the rapid urbanisation and population growth in the cities, the People's Republic of China has recognised the importance of community development based on an ever-increasing demand for social services. In 1994, the Chinese government adopted community service as an alternative way of providing the supplemental safety net in urban areas. Along with this top-down approach, resident-initiated activities, participation and grassroots organisations at the community level are growing at an incredible pace. Using a case study, this study explores the context and aspects of community services, participation and community development in a Chinese urban community. Results indicate that China's reformed market economy and welfare system presses ordinary urban people to reconnect to the local community to ensure welfare security and quality of life. Community participation in China has rediscovered the path of community development and re-interpreted the top-down and bottom-up approaches in the context of community services.     

Transformational leadership and childrens' aggression in team settings: A short-term longitudinal study

Social learning theory posits that one crucial way individuals learn how to behave is by observing and modeling the behavior of salient others. We conducted a short-term longitudinal study using multisource data on 183 teenaged ice hockey players (M age = 13.39 years) in 16 hockey teams to test the effects of 3 potentially salient leadership influences (team coaches, team players, and parents) on players' on-ice aggression. We tested a cross-level mediated model in which player aggression (penalty minutes) as measured by referees was the criterion variable. After controlling for prior levels of player aggression, team-level aggression mediated the relationship between team-level coach transformational leadership and player aggression. Parents' transformational leadership did not influence player aggression when assessed simultaneously with team-level coach transformational leadership. Consistent with social learning theory, the findings suggest that transformational leaders model prosocial behavior for followers.     

The effect of local livestock population changes on auction market viability—a spatial analysis

This paper examines the relationship between auction market closures over the period 1980–2000 and livestock population changes, as recorded in the agricultural and horticultural census. Auction market locations and census data were collated within a Geographical Information System and changes in livestock populations examined by region and by market catchment. Regionally, auction market closures during the 1980s were significantly associated with concurrent reductions in cattle numbers, with market reductions following loss of cattle in eastern lowland areas. No such association with livestock numbers was found during the 1990s. Within these agricultural regions, individual market closures were not associated with changes in local livestock numbers within their catchments. Thus, the historical evidence suggests that whilst a substantial loss of livestock within a region puts pressure on its network of auction markets, the viability of individual markets within the region is decided by other factors. Such factors include the capital costs of modernising market facilities and meeting new regulatory requirements, the effect of unpaid debt on market cashflow, and the market's ability to diversify into other areas of business. The recent outbreak of foot and mouth disease may lead to further market closures, both directly as a result of livestock culls and indirectly as farmers continue to use alternative marketing channels developed when auction markets were closed during the outbreak.     

Driving out failure

Product recall notices in shops, newspapers and elsewhere inform us now and then of children's toys that might be dangerous or electrical goods that could catch fire. You or I might describe that as faulty design. Tim Davis calls it an "escaped failure mode"—and he is against it. His world is not toys or electrical goods, but vehicles, where failure modes and recalls are more expensive and usually more serious. As an example: in 2001 the failure of certain Firestone tyres on Ford SUVs led to rollover accidents in which close to 300 people died. Nearly 20 million tyres needed to be recalled. Industry estimates put the cost at around †3 billion. It was Tim Davis who was called in to find out what had gone wrong. Julian Champkin interviewed him.