The measurement of capital utilisation rates

A strategy using spline function interpolation is developed f o r estimating capital utilisation rates . Cobb-Douglas, CES and translog functional forms are used in estimation. Tests for functional forms are conducted leading t o t h e s e l e c t i o n of the Cobb-Douglas form. Quarterly series of estimated utilisation rates and excess capacity measures are presented.     

A Dynamic Reinterpretation of Nash Bargaining With Endogenous Threats

This paper concerns the two‐stage game introduced in Nash (1953). It formalizes a suggestion made (but not pursued) by Nash regarding equilibrium selection in that game, and hence offers an arguably more solid foundation for the “Nash bargaining with endogenous threats” solution. Analogous reasoning is then applied to an infinite horizon game to provide equilibrium selection in two‐person repeated games with contracts. In this setting, issues about enforcement of threats are much less problematic than in Nash's static setting. The analysis can be extended to stochastic games with contracts.     

Identification of non-technical skills from the resilience engineering perspective: a case study of an electricity distributor

Training in non-technical skills (NTS) does not usually question the design of the work system, and thus focuses narrowly on workers as the unit of analysis. This study discusses how the identification of NTS, a major step for developing an NTS training program, might be re-interpreted from the perspective of resilience engineering (RE). This discussion is based on a case study of identifying NTS for electricians who perform emergency maintenance activities in an electricity distribution power line. The results of the case study point out that four data analysis procedures might operationalize the RE perspective: (a) identifying factors that make the work difficult and which could be integrated into NTS training scenarios; (b) identifying recommendations for re-designing the system, in order either to reduce or eliminate the need for NTS; (c) classifying the NTS into pragmatic categories, which are meaningful for workers; and (d) regarding the identification of NTS as an opportunity to give visibility to adaptations carried out by workers.     

Effects of Remanufacturable Product Design on Market Segmentation and the Environment

Despite documented benefits of remanufacturing, many manufacturers have yet to embrace the idea of tapping into remanufactured‐goods markets. In this article, we explore this dichotomy and analyze the effect of remanufacturable product design on market segmentation and product and trade‐in prices by studying a two‐stage profit‐maximization problem in which a price‐setting manufacturer can choose whether or not to open a remanufactured‐goods market for its product. Our results suggest that it is optimal for a manufacturer to design a remanufacturable product when the value‐added from remanufacturing is relatively high but product durability is relatively low and innovation is nominal. In addition, we find that entering a remanufactured‐goods market in and of itself does not necessarily translate into environmental friendliness. On the one hand, the optimal trade‐in program could result in low return and/or remanufacturing rates. On the other hand, a low price for remanufactured products could attract higher demand and thereby potentially result in more damage to the environment. Meanwhile, external restrictions imposed on total greenhouse gas emissions draw criticism in their own right because they risk stifling growth or reducing overall consumer welfare. Given these trade‐offs, we therefore develop and compare several measures of environmental efficiency and conclude that emissions per revenue can serve as the best proxy for emissions as a metric for measuring overall environmental stewardship.     

The Organization of Supplier Networks: Effects of Delegation and Intermediation

In a one‐principal two‐agent model with adverse selection and collusion among agents, we show that delegating to one agent the right to subcontract with the other agent always earns lower profit for the principal compared with centralized contracting. Delegation to an intermediary is also not in the principal's interest if the agents supply substitutes. It can be beneficial if the agents produce complements and the intermediary is well informed.     

Bargaining and Reputation

The paper develops a reputation based theory of bargaining. The idea is to investigate and highlight the influence of bargaining ‘postures’ on bargaining outcomes. A complete information bargaining model a la Rubinstein is amended to accommodate ‘irrational types’ who are obstinate, and indeed for tractability assumed to be completely inflexible in their offers and demands. A strong ‘independence of procedures’ result is derived: after initial postures have been adopted, the bargaining outcome is independent of the fine details of the bargaining protocol so long as both players have the opportunity to make offers frequently. The latter analysis yields a unique continuous‐time limit with a war of attrition structure. In the continuous‐time game, equilibrium is unique, and entails delay, consequently inefficiency. The equilibrium outcome reflects the combined influence of the rates of time preference of the players and the ex ante probabilities of different irrational types. As the probability of irrationality goes to zero, delay and inefficiency disappear; furthermore, if there is a rich set of types for both agents, the limit equilibrium payoffs are inversely proportional to their rates of time preference.     

Constructing Identities in Multicultural Learning Contexts

In this article we examine two concepts that aid our understanding of processes of identification in multiethnic schools. The first concept focuses on the complementarity of “three processes of identity” (identifying the other, being identified, and self-identification). This is brought together with the concept of sociocultural coupling introduced to examine the co-constructions of changes in practices (across places and times) and changes in identification. The analysis draws on an interview with a pupil, Monifa, a Black African (Nigerian) girl (aged 10 years), and on an interview with a Pakistani teacher, Shazia. Although Shazia and Monifa belonged to different generations (i.e., a pupil/daughter and a teacher/mother) and different cultural groups (British-born Black African and Pakistani Kashmiri), the same identity processes could be applied to the data. They both articulated accounts of “identifying the other,” “being identified,” and “self-identification,” which emphasized their transitions between cultural practices and multiple communities. Furthermore, we propose that sociocultural coupling has enabled us to understand the means by which aspects of cultural practices borrowed from home and school allows them to reproduce aspects of their home cultural identity and at other times to transform these identities.     

The Distributive Impact of Reforms in Credit Enforcement: Evidence From Indian Debt Recovery Tribunals

It is generally presumed that stronger legal enforcement of lender rights increases credit access for all borrowers because it expands the set of incentive compatible loan contracts. This result relies on an assumption that the supply of credit is infinitely elastic. In contrast, with inelastic supply, stronger enforcement generates general equilibrium effects that may reduce credit access for small borrowers and expand it for wealthy borrowers. In a firm‐level panel, we find evidence that an Indian judicial reform that increased banks' ability to recover nonperforming loans had such an adverse distributive impact.     

Debiasing or rebiasing? Moderating the illusion of delayed incentives

This paper studies corrective strategies for the illusion of delayed incentives (Soman, 1998), the phenomena that money-for-effort transactions that are unattractive in the present appear attractive when they are in the future. This illusion occurs because future effort is discounted more heavily than future monetary outcomes. In this research, we show that this bias of differential discounting can be corrected by asking consumers to perform effort at the time of decision-making. We further outline three explanations for why this intervention attenuates the illusion of delayed incentives, and discuss whether these explanations constitute a debiasing effect or a rebiasing effect (Larrick, 2004). We report the results of two laboratory experiments and discuss theoretical and practical implications of our findings.     

Performance indicators for collaborative networks based on collaboration benefits

Collaborative networks are typically assumed to bring clear benefits and competitive advantage to the participating members. However, the identification and characterisation of objective and measurable collaboration benefits is an important element for the wide adoption of this paradigm. Departing from a brief categorisation of the intuitive advantages of collaboration, this paper introduces an approach for the analysis of benefits in collaborative processes, introducing a number of performance indicators. The potential application of the indicators derived from this analysis is then discussed in the context of a virtual organisation's breeding environment. Finally, experimental results based on data from two existing collaborative networks are presented and discussed.