Covariate Order Tests for Covariate Effect

A new approach for constructing tests for association between a random right censored life time variable and a covariate is proposed. The basic idea is to first arrange the observations in increasing order of the covariate and then base the test on a certain point process defined by the observation times. Tests constructed by this approach are robust against outliers in the covariate values or misspecification of the covariate scale since they only use the ordering of the covariate. Of particular interest is a test based on the Anderson-Darling statistic. This test has good power properties both against monotonic and nonmonotonic dependencies between the covariate and the life time variable.     

$7.8 Billion for Everglades Restoration: Why Do Environmentalists Look So Worried?

The Comprehensive Everglades Restoration Plan, enacted in 2000, is a $7.8 billion federal/state investment in restoring the Florida Everglades ecosystem. The plan is a negotiated compromise between divergent interests in south Florida and promises to provide water and flood control for urban and agricultural users while maintaining a priority commitment to the natural system when allocating water produced by the 30-year project. The environmental community calls for independent scientific review of un-tested technologies, early and substantial hydrologic benefits to the remaining Everglades, including Everglades National Park, and strong programmatic regulations of the federal project to ensure that ecological restoration remains its primary purpose in spite of inherently conflicting interests at the state and local level.     

TRUST,SOCIAL CAPITAL,AND ECONOMIC DEVELOPMENT

Many argue that elements of a society's norms, culture, or social capital are central to understanding its development. However, these notions have been difficult to capture in economic models. Here we explore a possible role for “trustworthiness” as corresponding to social capital. Individuals are trustworthy when they perform in accordance with promises, even if this does not maximise their payoffs. The usual focus on incentive structures in motivating behaviour plays no role here. Instead, we emphasise more deep‐seated modes of behaviour and consider trustworthy agents being socialised to act as they do. To model this socialisation, we borrow from a process of preference evolution pioneered by Bisin and Verdier (2001). The model developed endogenously accounts for social capital and explores its role in the process of economic development. It captures in a simple, formal way the interaction between social capital and the economy's productive processes. The results obtained caution against rapid reform and provide an explanation for why late‐developing countries may not easily be able to transplant the modes of production that have proved useful in the West. (JEL: O1, O3, O4, Z1)     

Investigating the impact of violations of the “left and top means first” heuristic on response behavior and data quality

ABSTRACT

Web surveys are an established data collection mode that use written language to provide information. The written language is accompanied by visual elements, such as presentation formats and shapes. However, research has shown that visual elements influence response behavior because respondents sometimes use interpretive heuristics to make sense of the visual elements. One such heuristic is the ‘left and top means first’ (LTMF) heuristic, which suggests that respondents tend to believe that a response scale consistently runs from left to right or from top to bottom. We conducted a web survey experiment to investigate how violations of the LTMF heuristic affect response behavior and data quality. For this purpose, a random half of respondents received response options that followed a consistent order and the other half received response options that followed an inconsistent order. The results reveal significantly different response distributions between the two groups. We also found that inconsistently ordered response options significantly increase response times and decrease data quality in terms of criterion validity. We, therefore, recommend using options that follow the design strategies of the LTMF heuristic.     

When Precaution Creates Misunderstandings: The Unintended Effects of Precautionary Information on Perceived Risks,the EMF Case

In the past decade, growing public concern about novel technologies with uncertain potential long‐term impacts on the environment and human health has moved risk policies toward a more precautionary approach. Focusing on mobile telephony, the effects of precautionary information on risk perception were analyzed. A pooled multinational experimental study based on a 5 × 2 × 2 factorial design was conducted in nine countries. The first factor refers to whether or not information on different types of precautionary measures was present, the second factor to the framing of the precautionary information, and the third factor to the order in which cell phones and base stations were rated by the study participants. The data analysis on the country level indicates different effects. The main hypothesis that informing about precautionary measures results in increased risk perceptions found only partial support in the data. The effects are weaker, both in terms of the effect size and the frequency of significant effects, across the various precautionary information formats used in the experiment. Nevertheless, our findings do not support the assumption that informing people about implemented precautionary measures will decrease public concerns.     

Resolving conflict over salespeople’s brand adoption in franchised channels of distribution

Many franchise-based retail outlets offer both the franchisor-owned brand and brands of competitors or independent suppliers. As salespeople may influence customers’ brand choices considerably, an important concern for franchisors is how to raise salespeople’s selling preferences for the franchisor-owned brand. However, the channel administration literature suggests that salespeople may not automatically favor the franchisor’s brand over other brand lines. While a large body of research examines franchise–channel relationships, previous investigations have conspicuously overlooked this channel conflict. In proposing a conceptual model grounded in the behavioral sciences, this study analyzes how franchisors can induce salespeople to advocate their brand by fostering the intention to promote the franchisor-owned brand (IFOB) in customer interaction. The results of an empirical field study show that individual brand promotion depends on factors such as salespeople’s identification with the franchisor and their tenure with the organization, as well as on the franchisor’s prestige and administration of the franchise. Moreover, we find that franchisees’ IFOB transfers to salespeople, but only if franchisees display a charismatic leadership style. We discuss these findings in light of extant theory and empirical evidence and derive several managerially relevant implications for the administration of franchised retail channels.     

An individual-based model for competingDrosophila populations

An individual-based model forDrosophila is formulated, based on competition amongst larvae consuming the same batch of food. The predictions of the model are supported by data for single speciesDrosophila populations reared in the laboratory. The model is used to build a simple discrete model for the dynamics ofDrosophila populations that are kept over a number of generations. The dynamics of a single species is shown to give either a stable equilibrium or fluctuations which can be periodic or chaotic. When the dynamics of a species in the absence of the other is periodic or chaotic, we found coexistence or two alternative states, on neither of which the species can coexist.     

Thinking possibilistically in a probabilistic world

We cannot live on the knife edge of disaster all the time. We cannot even think about disastrous extremes with any clarity, says Lee Clarke . For 300 years we have equated thinking probabilistically with thinking rationally, but is that enough for thinking about terrorism, air crashes—or even God?     

Flexible SWAps for Strategic Policy‐making: Reflections on the Zambian Experience

This article offers an alternative view on the emergence of new forms of development co‐operation by analysing the emergence of SWAps in Zambia since the early 1990s. SWAps in Zambia emerged not as part of a grand design but in response to the changing environment in which aid agencies were operating. An examination of the relative success of the health and education SWAps and the spectacular failure of the agriculture SWAp suggests that a flexible approach is more effective than the imposition of a planning template. Furthermore, the failure of the agricultural SWAp has been followed by significant new forms of public/private partnership.