AN EXPLORATORY STUDY OF PATTERNS OF PRIORITIES AND TRADE-OFFS AMONG OPERATIONS MANAGERS

A survey of 15 firms showed that agreement among operations managers on competitive priorities is related to agreement on long-run strategic trade-off decisions and not to agreement on shortrun trade-offs. Furthermore, intended short-run actions were often in conflict with stated competitive priorities. Use of management-by-objectives linked to performance appraisal was related to agreement on competitive priorities.     

HAZARDOUS WASTE DISPOSAL: A WASTE‐FUEL BLENDING APPROACH

The disposal of hazardous wastes creates major economic and environmental problems. One productive use of hazardous wastes is to blend them into fuel, which mitigates damage to the environment by recycling waste into fuel and reducing fossil‐fuel consumption. Operations personnel face a daunting task of efficiently blending hazardous waste into fuel, while simultaneously maintaining environmental regulatory requirements. This research develops a goal‐programming approach to the waste‐fuel‐blending process that considers the diverse objectives of fuel managers. A realworld case study at a cement kiln illustrates the effectiveness of this approach, where the implementation followed principles of team building and quality management.     

Factors Associated with Recreational Gambling Frequency among Older Adults

Although a steady increase in the number of legalized gambling venues is occurring, few studies have empirically investigated the determinants of recreational gambling frequency among older adults. This investigation is based on a random-digit dialling sample of 290 residents 55 and older in the Las Vegas, Nevada, USA area whom self-reported that they currently gamble, had moved to Las Vegas after the age of 18, and were not problem or pathological gamblers. Using ordinal regression methods, we examined the impact upon gambling frequency of the following factors: age when moved to the community; considerations motivating in-migration to the community; and social interaction during gambling; as well as age; sex; income; and marital status. Results indicate that more frequent gamblers are single, male, 55–60 years old, gamble with friends, moved to Las Vegas to live after the age of 40 and for whom gambling was an important motivation for moving to Las Vegas.     

The promise and perils of using big data in the study of corporate networks: problems,diagnostics and fixes

Network data on connections between corporate actors and entities – for instance through co‐ownership ties or elite social networks – are increasingly available to researchers interested in probing the many important questions related to the study of modern capitalism. Given the analytical challenges associated with the nature of the subject matter, variable data quality and other problems associated with currently available data on this scale, we discuss the promise and perils of using big corporate network data (BCND). We propose a standard procedure for helping researchers deal with BCND problems. While acknowledging that different research questions require different approaches to data quality, we offer a schematic platform that researchers can follow to make informed and intelligent decisions about BCND issues and address these through a specific work‐flow procedure. For each step in this procedure, we provide a set of best practices for how to identify, resolve and minimize the BCND problems that arise.     

FINANCIAL RESTRAINTS AND PRIVATE INVESTMENT: EVIDENCE FROM A NONSTATIONARY PANEL

We employ recently developed panel data methods to estimate a model of private investment under financial restraints for 20 developing countries using annual data for 1972–2000. We show that the qualitative nature of the results varies depending on whether we take into account cross‐country effects. When we allow for cross‐sectional dependence, investment displays more sensitivity to world capital market conditions and exchange rate uncertainty. A perhaps even more surprising result is the finding that countries that managed to suppress domestic real interest rates without generating high inflation enjoyed higher levels of private investment than those that would have been obtained under liberalized conditions. (JEL O16, G18, G28)     

STRUCTURAL CHANGE, COMPETITIVE BALANCE, AND THE REST OF THE MAJOR LEAGUES

Analyzing North American major sports leagues other than baseball, we find no break points in competitive balance time series corresponding to rule changes, the draft, free agency, salary caps, or labor disputes except for the 1998 basketball lockout. Some expansion and team relocation correspond with break points. Mergers that do correspond with break points all enhance competitive balance. But not all expansions, moves, and mergers correspond with break points. Remaining explanatory challenges include a general negative trend in competitive balance in basketball and the occurrence of a break point in football, 1976–1977. ( JEL C32, L83)     

SIGNAL EXTRACTION AND RATIONAL INATTENTION

In this paper we examine the implications of two theories of informational frictions, signal extraction (SE) and rational inattention (RI), for optimal decisions and economic dynamics within the linear‐quadratic‐Gaussian (LQG) setting. We first show that if the variance of the noise and channel capacity (or marginal information cost) is fixed exogenously in the SE and RI problems, respectively, the two environments lead to different policy and equilibrium asset pricing implications. Second, we find that if the signal‐to‐noise ratio and capacity in the SE and RI problems are fixed, respectively, the two theories generate the same policy implications in the univariate case, but different policy implications in the multivariate case. We also show that our results do not depend on the presence of correlation between fundamental and noise shocks. We then discuss the applications to macroeconomic models of permanent income and price‐setting. (JEL C61, D81, E21)