Nonexclusive Competition in the Market for Lemons

A seller can trade an endowment of a perfectly divisible good, the quality of which she privately knows. Buyers compete by offering menus of nonexclusive contracts, so that the seller can privately trade with several buyers. In this setting, we show that an equilibrium exists under mild conditions and that aggregate equilibrium allocations are generically unique. Although the good for sale is divisible, in equilibrium the seller ends up trading her whole endowment or not trading at all. Trades take place at a price equal to the expected quality of the good, conditional on the seller being ready to trade at that price. Our model thus provides a novel strategic foundation for Akerlof's (1970) results. It also contrasts with competitive screening models in which contracts are assumed to be exclusive, as in Rothschild and Stiglitz (1976). Latent contracts that are issued but not traded in equilibrium play an important role in our analysis.     

Exploring the antecedents of potential absorptive capacity and its impact on innovation performance

This paper builds upon the theoretical framework developed by Zahra and George [Absorptive capacity: a review, reconceptualization, and extension. Academy of Management Review 2002;27:185–203] to empirically explore the antecedents of potential absorptive capacity (PAC), i.e. the ability to identify and assimilate external knowledge flows. Based on a sample of 2464 innovative Spanish firms, we find evidence that R&D cooperation, external knowledge acquisition and experience with knowledge search are key antecedents of a firm's PAC. Also, during periods of important internal reshaping, when there are significant changes in strategy, design of the organization and marketing, firms exert more effort to accumulate PAC. Finally, we find that PAC is a source of competitive advantage in innovation, especially in the presence of efficient internal knowledge flows that help reduce the distance between potential and realized capacity.     

Heterogeneous Perspectives in Coalitions and Community-Based Responses to Sex Trafficking and Commercial Sexual Exploitation: Implications for Practice

ABSTRACT

Despite increases in community-based coalitions to address sex trafficking and commercial sexual exploitation (CSE), and the coinciding ideological debates surrounding sexual commerce, few studies have examined the dynamics between and perspectives among coalition members. This paper aims to explore 1) coalition members' perspectives on religion, politics, feminism, sex trafficking/sex work, neoliberalism/neo-abolitionism and 2) the impacts of such perspectives on coalition members' anti-trafficking/CSE work. Drawing from a larger qualitative study, 24 in-depth semi-structured interviews were conducted with current and former coalition members in an urban Midwestern city. Findings suggest varied religious identities, which challenged some providers in coordinating services for the lesbian gay bisexual transgender queer/questioning (LGBTQ) community or women with a history of or considering abortions. Providers generally identified as democrat as well as feminist in some way, but had conflicting views of sexual commerce. These competing ideologies created challenges for cohesive coalition action. Consequently, it may be essential to facilitate intergroup dialogues addressing diverse perspectives, come to consensus on goals, or develop subgroup goals in order to create a functioning inter-agency response. Future studies should explore such dynamics across multiple coalitions nationwide and the impact such perspectives may have on survivors engaging in services.     

The sovereign crisis and Italy’s potential output

We evaluate the effects of the European sovereign crisis on Italian potential output (natural output, in the absence of nominal rigidities) by simulating a New Keynesian model. Our results are as follows. First, the 2011–2013 recession subtracted 1.6 percentage points from potential output growth and widened the output gap. Second, the 2013 reforms limited the reduction in output capacity to 1.4 points and enhanced long-run growth by 3. Third, once a balanced budget is achieved in the medium term, reductions in either labor or capital income taxes would boost potential output growth by 0.2 points per year.     

‘Keeping families and children in mind’: an evaluation of a web‐based workforce resource

This study outlines pilot evaluation data of the web‐based training resource ‘Keeping Families and Children in Mind’, designed for clinicians who work with families where a parent has a mental illness. The resource was developed from scoping existing workforce packages and in consultation with consumers, carers, researchers and mental‐health clinicians. Preliminary evaluation data were collected from an urban and a rural site in Australia via focus group interviews and pre‐ and post‐training questionnaires to ascertain the experiences of those who participated in the training. Additionally, training facilitators were invited to maintain journals in order to identify planning and implementation issues when using the resource. Post‐training, participants emphasized the need to work collaboratively with others, as well as the importance of acknowledging and working with the family members of consumers, especially children. Also, participants reported positive changes in knowledge, skill and confidence when working with families affected by parental mental illness. Facilitators highlighted technology issues and the need to work interactively with participants when using the resource. Recommendations regarding policy and future research conclude this paper.     

The willingness-to-accept/willingness-to-pay disparity in repeated markets: loss aversion or ‘bad-deal’ aversion?

Several experimental studies have reported that an otherwise robust regularity—the disparity between Willingness-To-Accept and Willingness-To-Pay—tends to be greatly reduced in repeated markets, posing a serious challenge to existing reference-dependent and reference-independent models alike. This article offers a new account of the evidence, based on the assumptions that individuals are affected by good and bad deals relative to the expected transaction price (price sensitivity), with bad deals having a larger impact on their utility (`bad-deal’ aversion). These features of preferences explain the existing evidence better than alternative approaches, including the most recent developments of loss aversion models.     

The internal relocation premium: are migrants positively or negatively selected? Evidence from Italy

This paper analyzes the wage returns from internal migration for recent graduates in Italy. We employ a switching regression model that accounts for the endogeneity of the individual's choice to relocate to get a job after graduation: the omission of this selection decision can lead to biased estimates, as there is potential correlation between earnings and unobserved traits, exerting an influence on the decision to migrate. The empirical results sustain the appropriateness of the estimation technique and show that there is a significant pay gap between migrants and non-migrants; migrants seem to be positively selected and the migration premium is downward biased through OLS estimates. The endogeneity of migration shows up both as a negative intercept effect and as a positive slope effect, the second being larger than the first: bad knowledge of the local labor market and financial constraints lead migrants to accept a low basic wage but, due to relevant returns to their characteristics, they finally obtain a higher wage than the others.     

Comparing aggregate and disaggregate forecasts of first order moving average models

This paper compares the performance of “aggregate” and “disaggregate” predictors in forecasting contemporaneously aggregated vector MA(1) processes. The necessary and sufficient condition for the equality of mean squared errors associated with the two competing predictors is provided in the bivariate MA(1) case. Furthermore, it is argued that the condition of equality of predictors as stated by Lütkepohl (Forecasting aggregated vector ARMA processes, Springer, Berlin, 1987) is only sufficient (not necessary) for the equality of mean squared errors. Finally, it is shown that the equality of forecasting accuracy for the two predictors can be achieved using specific assumptions on the parameters of the vector MA(1) structure.