BILATERAL OLIGOPOLY IN POLLUTION PERMIT MARKETS: EXPERIMENTAL EVIDENCE

We experimentally investigate behavior in a bilateral oligopoly using a supply function equilibria model discussed by Klemperer and Meyer (1989), Hendricks and McAfee (2010), and Malueg and Yates (2009). We focus on the role that market size and the degree of firm heterogeneity have on the market equilibrium. Our results indicate that subjects within the experiment recognize the strategic incentives in a bilateral oligopoly, but they do not exploit these incentives to the exact magnitude predicted by theory. We find weaker support for predicted market outcomes, as market efficiency does not depend on market size, and in some cases buyers or sellers are more successful at extracting the rents from the market. (JEL L13, Q5, C9)     

LEAN AND GREEN? AN EMPIRICAL EXAMINATION OF THE RELATIONSHIP BETWEEN LEAN PRODUCTION AND ENVIRONMENTAL PERFORMANCE

Lean production may have a significant public good spillover—improved environmental performance. However, empirical evidence of the link between lean production practices and environmental performance has not resolved the nature of the relationship. To explore this issue, we conduct an empirical analysis of the environmental performance of 17,499 U.S. manufacturing establishments during the time period 1991–1996. We find that those establishments that adopt the quality management standard ISO 9000 are more likely to adopt the environmental management standard ISO 14000. We also find strong evidence that lean production, as measured by ISO 9000 adoption and low chemical inventories, is complementary to waste reduction and pollution reduction.     

COMPUTER INTEGRATION AND CATASTROPHIC PROCESS FAILURE IN FLEXIBLE PRODUCTION: AN EMPIRICAL INVESTIGATION

This paper empirically investigates the effect of advanced manufacturing technology on process stability during flexible production in a process industry. A sample of 61 North American fine paper plants is used to examine the relationship between the level of automation installed for controlling changes between paper grades and the incidence of paper web breaks. These web breaks are catastrophic failures; they require the entire plant to be stopped, reinitialized, and restarted. Because a large fraction of breaks occurs shortly after changeovers, they are an important determinant of the aspect of plant flexibility, called mobility, or the ability to move between products with only small penalties. In an attempt to ensure stable and mobile production, many plants have implemented changeover automation. We find, however, that higher levels of this automation are significantly associated with higher rates of catastrophic failure among the plants studied. We suggest that this finding becomes less paradoxical when considered in light of a recent stream of research on advanced manufacturing technologies, loosely called the usability perspective. According to this perspective, automation designed and implemented with the narrow, technical goal of replacing human operators or removing their discretion over a production process is misguided, especially in environments in which requirements are changing rapidly.     

Exploring cultural economies of internationalization: the role of ‘iconic individuals’ and ‘brand leaders’ in the globalization of headhunting

Understanding the internationalization of professional services like advertising, architecture, accounting, consulting and legal services continues to attract considerable attention in academic and policy circles. Research in geography and management studies has emphasized the different organizational strategies adopted by firms as they seek to develop and maintain a competitive position within an increasingly global economy. In this article we develop a new strand in this literature by adopting a cultural economy approach to argue that an important, yet comparatively neglected, aspect of the internationalization strategies of transnational professional service firms is the role of certain ‘iconic individuals’ and ‘brand leaders’ in influencing the practice of internationalization. Drawing on empirical research into the burgeoning European executive search (headhunting) industry we identify a cadre of such individuals and brand leaders that act as resources other firms leverage when internationalizing. This highlights the importance of a cultural economy perspective in theories of the internationalization of professional services and its value in moving discussions beyond purely economic analyses of competitive advantage.     

BELIEVING IN ECONOMIC THEORIES: SEX, LIES, EVIDENCE, TRUST, AND IDEOLOGY

Political economics views heterogeneity of political preferences largely as a reflection of heterogeneity in valuations of known policy outcomes. Voters, however, may be uncertain about policy outcomes, in part, because of uncertainty about how the economic world actually works. Heterogeneity of people's beliefs about how well economic theories predict outcomes could then affect policy through democratic institutions. Using a combination of experimental and survey techniques drawn from economics and social and political psychology, we examine several potential sources of heterogeneity in beliefs about the predictive content of supply and demand theory, with a particular focus on the role of ideology. ( JEL A110, A130, C420, C900)     

A CHOICE THEORETIC MODEL OF THE OPTIMAL USE AND ISSUANCE OF TRADE CREDIT

This paper develops an extended inventory theoretic model for the purpose of analyzing the optimal use and issuance of trade credit. One significant result is that the incentives payments costs associated with commodity transactions and from the existence of positive per unit cost associated with storing commodities. A further important result is that the cost charged by the firm in return for its issuance of credit consists in firm earning asset holdings, and a risk premium reflecting the possibility of default on the part of the household.     

Cost and Stakeholder Views: A combined approach to evaluating services

Correspondence to Jackie Powell, Department of Social Work Studies, University of Southampton, Highfield, Southampton SO9 5NH Summary This paper focuses on the decision-making process at a strategiclevel in the context of implementing a ‘community care’policy for older people with mental health problems. It is basedon the findings of an evaluative study of the implementationof one district health authority's strategy for the decentralizationof its mental health services for older people. The study wasan attempt to develop an evaluative approach which acknowledgedthe importance of cost, but also the need to include the viewsof the several ‘interested parties’, not least thosewho used the service. The reconciliation of what might be seenas the conflicting interests of the wider public for a carefulutilization of resources with the individual's needs for anaccessible and responsive service represents a major challengefor planners, managers and practitioners within the public sector.This paper argues the need for dialogue as the basis for partnershipbetween those with a primarily financial focus to their workand those more intimately concerned with individual needs.