FURTHER RESULTS ON EQUILIBRIUM PATTERNS OF COMPETITION IN OCS LEASE SALES

A prior model of competitive bidding for offshore petroleum leases is subjected to more extensive empirical testing based on underlying geological data prepared by the U.S. Geological Survey. The current results strongly reinforce the tentative conclusions advanced in the previous paper, and demonstrate the robustness of the model. In light of the current results, it seems very likely that participants in offshore lease sales behave as if their operations were constrained physically such that only a limited volume of petroleum reserves are pursued in any one sale.     

ECONOMIC WELFARE, PRICE AND PROFIT: THE DETERRENT EFFECT OF ALTERNATIVE ANTITRUST REGIMES

This paper critically examines the deterrent effect of price-fixing statutes under alternative antitrust regimes. A regime is defined by the litigation strategy which the antitrust agency employs in detecting cartels and in determining whether prosecution is warranted and by the basis upon which courts estimate damages. The results of the analysis suggest that antitrust policy may actually induce cartels to further restrict output, increasing welfare loss above the level imposed by an unthreatened, perfect monopoly. Litigation strategy and damages should be founded upon consideration of welfare loss measures to avoid this possibility.     

ANTICIPATED MONEY, UNANTICIPATED MONEY, AND OUTPUT: 1873–1930

Unanticipated money does, and anticipated money does not, influence output for the period between the Civil War and the Depression. These conclusions, reached using a two-step econometric procedure, appear robust for a wide variety of measures of output and for two alternate definitions of money.     

TAKEOVERS: MANAGERIAL INCOMPETENCE OR MANAGERIAL SHIRKING?

Agency theory identifies managerial shirking as the cause for takeovers, while other explanations focus on low ability managers. This paper formalizes Jensen's free cash flow variant of agency theory by constructing a simple two-period game which captures the distinctive empirical implications of the two theories.
Using data for petroleum firms following the oil price shock of 1979-80, we find that firms undergoing financial restructuring exhibited higher values of Tobin's q. Additionally, evidence of management turnover and workforce cuts emphasizes that takeovers appear primarily designed to address agency concerns.     

Social Conservatism, New Republicans, and the 1980 Election

Using data from the 1980 National Election Study, we examinethe claims (1) that those voters who shifted to Ronald Reaganin 1980 ("New Republicans") were drawn disproportionately fromthe lower to middle strata of the population: (2) that theywere social conservatives motivated by issues like abortionand ERA: and (3) that they were more religious and alienatedfrom the federal government than average. Our results stronglysuggest that all of these assertions are false and thus questionthe emergence of a "neopopulist" or "Middle American Radical"political constituency on the right wing of American politics.Our findings also have implications for prominent theories aboutconservative political movements and about the changing natureof party politics in a postindustrial society.     

Social Work Students' Perceptions of Child Abuse: An International Comparison and Postmodern Interpretation of its Findings

Correspondence to R. James Christopherson, School of Social Studies, University of Nottingham NG7 2RD, UK. Summary The decision about whether behaviour with children is acceptablehas far-reaching consequences for those involved. Social workersmust decide what behaviour leads people into the child protectionsystem. This study aims to identify how far social work studentsachieve a consensus on the acceptability of behaviour, and whethersimilar items achieve agreement between groups in Sweden andEngland. Forty-four vignettes of behaviour with children whichmight be seen as unacceptable were administered to 52 first-yearsocial work students in Ume, Sweden, and 50 English students.They were asked to rank the behaviour on a 5-point scale, where‘1’ represented ‘Fine’ and ‘5’‘Totally unacceptable'. Key findings were that there is little consensus within societiesabout what is acceptable behaviour towards children, and significantdifferences between them. It is argued that this is the resultof the many different discourses operating in the field. Theauthor points out the difficulties this can cause, and arguesfor the acceptance of a postmodern approach, which though stressingthe importance of consensus in decision making, ultimately positsthat effective and ethical practice must be based on relationship.Such an approach would resolve paradoxes which have challengeda more modernist understanding of social work.     

MANAGING CYCLIC INVENTORIES

Cyclic inventory is the buffer following a machine that cycles over a set of products, each of which is subsequently consumed in a continuous manner. Scheduling such a machine is interesting when the changeover times from one product to another are non‐trivial—which is generally the case. This problem has a substantial literature, but the common practices of “lot‐splitting” and “maximization of utilization” suggest that many practitioners still do not fully understand the principles of cyclic inventory. This paper is a tutorial that demonstrates those principles. We show that cyclic inventory is directly proportional to cycle length, which in turn is directly proportional to total changeover time, and inversely proportional to machine utilization. We demonstrate the virtue of “maximum changeover policies” in minimizing cyclic inventory—and the difficulty in making the transition to an increased level of demand. In so doing, we explicate the different roles of cyclic inventory, transitional inventory, and safety stock. We demonstrate the interdependence of the products in the cycle—the lot‐size for one product cannot be set independently of the remaining products. We also give necessary conditions for consideration of improper schedules (i.e., where a product can appear more than once in the cycle), and demonstrate that both lot‐splitting and maximization of utilization are devastatingly counter‐productive when changeover time is non‐trivial.