Risk Premiums and Benefit Measures for Generalized-Expected-Utility Theories

Standard tools for the analysis of economic problems involving uncertainty, including risk premiums, certainty equivalents and the notions of absolute and relative risk aversion, are developed without making specific assumptions on functional form beyond the basic requirements of monotonicity, transitivity, continuity, and the presumption that individuals prefer certainty to risk. Individuals are not required to display probabilistic sophistication. The approach relies on the distance and benefit functions to characterize preferences relative to a given state-contingent vector of outcomes. The distance and benefit functions are used to derive absolute and relative risk premiums and to characterize preferences exhibiting constant absolute risk aversion (CARA) and constant relative risk aversion (CRRA). A generalization of the notion of Schur-concavity is presented. If preferences are generalized Schur concave, the absolute and relative risk premiums are generalized Schur convex, and the certainty equivalents are generalized Schur concave.     

The Economic Value of a Sustainable Supply Chain

The economic rationale to operate a global supply chain in a sustainable manner is developed. Arguments are made based on marketing, finance, and production theories that by engaging in socially responsible behavior the firm will increase sales, decrease costs, reduce financial risk, and increase profits, which will ultimately increase returns to the firm's shareholders. A model is developed of the mechanism by which modern production methods such as lean production and quality management result in sustainable corporate behavior that, in the long run, translates into higher stock valuations. The production effects cause marketing and financial risk effects that are complementary, and all three channels of influence synergistically result in higher stock values in the model. These effects also provide important benefits to other stakeholders of the firms including employees, customers, the environment, and the community. An important ethical issue in global supply chains is working conditions in foreign plants often leading to allegations of sweatshop labor conditions. This issue is used to illustrate how lean production practices can affectconsumers, employees, and financial risk. Conclusions from the sweatshop labor issue are shown to apply to other sustainability issues as well.     

Pollsters, the Press, and Political Polling in Britain

This article reviews the history of political polls in Britainsince 1945, when the first such poll was conducted, and examinescurrent topical issues, including the relationship between themedia and the polls.     

Effects of Question Wording and Format on Political Attitude Consistency

Numerous studies in the past decade have suggested that theAmerican voter has become increasingly sophisticated, ideologically,and that this is due largely to the separate or combined impactof the growing educational attainments of the U.S. public andthe greater salience of politics in the 1960s and 1970s. Thisstudy, however, hypothesizes that much of the change might bedue to a simple methodological artifact—changes in questionwording and format—and reports data from a recent nationalexperiment which strongly supports such an interpretation. Thegeneralizations derived from The American Voter may, therefore,not be quite as "time-bound" as the current literature wouldlead us to believe.     

Rewiring global networks at local events: congresses in the stock photo trade

Digital technologies have enabled the geographical expansion of production and the distribution of creative goods and communication. Simultaneously, the number of trade fairs and congresses has increased. This rise of temporary encounters has led to theorizations of events as marketplaces, learning sites and field‐configuring practices. This article elaborates on the metaphor of rewiring to propose and empirically demonstrate a further role of industry events for global business. Drawing on the case of the global stock photo trade, we use a unique survey to map the global network of sales partnerships as well as interviews conducted at international lead congresses to demonstrate how these events are enacted as social relays. Our findings demonstrate how temporary face‐to‐face contact facilitates long distance relationships between organizations and how it dynamically shapes the global industry network. Thus, we contribute to closing the gap between social action at the micro level, organizational linkages at the meso level and the structure of global industry networks at the macro level.     

ANALYSIS OF THE LEAD TIME AND LEARNING FOR CAPACITY EXPANSIONS

Firms capable of reducing the time required to bring new products to the marketplace realize significant competitive gains. In this context, the existing literature on capacity expansion is limited because it does not consider the lead time required to construct and operationalize new capacity. Models are introduced here that capture the capacity expansion lead time as well as two types of learning. Specifically, learning may reduce the lead time or cost required to complete an expansion. Analytic and numerical results show that the optimal solution can be significantly affected by the explicit treatment of the lead time and learning.     

BENCHMARKING MANUFACTURING PERFORMANCE IN THE SEMICONDUCTOR INDUSTRY

A methodology for benchmarking manufacturing practices in the worldwide semiconductor industry is presented. Several metrics for measuring semiconductor manufacturing performance are defined and discussed. Interviews conducted during site visits are used to identify the managerial, technical, and organizational practices underlying superior metric performance. Multivariate statistical analyses of the performance metric data indicate that these performance metrics measure independent aspects of performance and expose significant performance differences among fabs.     

AN OPTIMIZATION-BASED METHODOLOGY FOR RELEASE SCHEDULING

Operational-level scheduling decisions on the factory floor include the release policy and the dispatching rule. Recent work by researchers suggests that factory performance depends heavily on the release policy. Several heuristic factory release rules have been developed that generate release decisions based on the status of the bottleneck machine. The heuristic rules perform very well in reducing the work-in-process inventory. However, factory output schedules generated by these rules generally fail to match the demand pattern, creating excessive finished goods inventory and/or excessive backorders. To overcome these difficulties, a computationally efficient integer programming model is proposed for release scheduling.