Myopia and saliency in renewable resource management

An important challenge in managing renewable resources is to understand why owners and managers sometimes make decisions that deplete resources and future earnings, such as when graziers allow pastures and land condition to be degraded. In this paper, we test two potential reasons for unsustainable management practices, myopia and salience, with each explaining why resource managers may exhibit impatience in harvest decisions. Myopia is associated with decision makers placing lower weight on future outcomes than would be implied by their pure time preference. Salience is associated with overweighting of consumption ‘now’, implying inconsistency in time preferences. To test for these effects on renewable resource management, an incentivised, dynamic field experiment was carried out with rangeland grazing enterprise owners in north‐eastern Australia that related management choices with uncertain rainfall events to both profits and land condition over time. Results demonstrate that respondents exhibiting myopia/salience in their choices tended to achieve lower cumulative scores in the experiment, as well as lower land conditions on their properties as measured with remote sensing data. Our results explain why there may be persistent optimisation failures by resource owners that reduce both profits and environmental outcomes.     

Risk Behaviours and Grazing Land Management: A Framed Field Experiment and Linkages to Range Land Condition

We use a framed field experiment considering hypothetical stocking rate decisions made by grazing enterprise managers and estimate non‐linear multinomial logit models for a range of nested non‐expected utility and expected utility models. The risk and decision‐bias parameters for five models estimated for individual responses are shown to be significantly related to land condition but in ways which suggest behavioural aspects of decision making are critical in understanding land management and stocking rate decisions. Our results show that individual heterogeneity in decision making amongst farming groups is likely to be a significant source of variation in farming intensity and technology adoption decisions. This heterogeneity does not appear to be a reflection of socio‐demographic characteristics. Furthermore, decision functions appear to be biased toward selection of simpler representative functions (e.g. Expected Utility) for sample averages. This suggests that experimental findings that Expected Utility is representative for actual decisions may be due to sample averaging rather than reflect actual behaviour.     

Factors affecting the long-term survival of eBay ventures: a longitudinal study

With 40% of the world able to access the internet, online marketplaces provide the small entrepreneur with a hitherto incomprehensible opportunity to reach a global audience with very low barriers to entry and low risk. Yet, academic research has not studied the factors unique to online businesses that affect their long-term survival. This study is the first of its kind that does so using data gathered from eBay’s feedback system in 2004, 2009, and 2013. The results present data on the rate of discontinuance of eBay ventures. Further, a logistic regression analysis suggests that unique factors such as venture size, age, and feedback reputation positively influence the likelihood of long-term survival of an eBay venture. Based on these results and the ensuing discussion, implications for researchers and practitioners are provided.     

Wages Councils: Was There a Case for Abolition?

The 1993 Trade Union Reform and Employment Rights Act removed the remaining minimum wage protection for some 2.5 million low paid workers by abolishing the last 26 UK Wages Councils. The Government's case for abolition rested on three key arguments: (1) minimum wages do little to alleviate poverty since most covered workers do not live in poor households; (2) when in operation, minimum wages reduced employment in covered industries; (3) the problems of poverty that the wages councils were set up to deal with in 1909 are not relevant in today's labour market. In this paper we address each of these points in turn. We find that: (a) 50 per cent of families with at least one earner being paid wages council rates come from the poorest 20 per cent of families; (b) the existing evidence suggests that abolishing the Wages Councils is unlikely to create jobs; (c) the widening earnings distribution in the UK means that low pay is an increasingly important determinant of poverty. If anything, there appears to be an increasing need for minimum wage legislation in the UK.     

Complete streets at the municipal level: A review of American municipal Complete Street Policy

The Complete Streets Act of 2009 preceded a proliferation of municipal level complete streets policies across United States. These policies aim to challenge auto-centric street design standards in favor of “complete streets” that are safe for users of all abilities. This proliferation of “complete streets” policy is noteworthy progress in addressing the needs of non-motorized street users and sustainable transportation. However, research that critically and systematically analyzes the specific content of the policies and how they attempt to guide street design decision-making is limited. We address this gap through a review of municipal level Complete Street policy. We sampled a total of 113 municipal level complete streets policies drawn from The National Complete Streets Coalition’s database. We reviewed the policies to inventory their qualitative content, probe their definitions, and understand their implications for design and implementation. We conclude that most municipal Complete Street policies do not guide the negotiation of tradeoff between users within the street right-of-way. The policies are broad and defer to idealistic goals of safely accommodating all user types equally without recognizing the implicit hierarchy of accommodation. This study is limited to analyzing the content of the policies alone; we argue this is a necessary first step in critically thinking through Complete Street policy development and examining if current municipal policies are able to successfully challenge the primary accommodation of automobility. Without a critical analysis, there is a risk of replicating policy that is ineffective at achieving the core goals outlined by the Complete Streets concept.     

Did the Retreat of UK Trade Unionism Accelerate during the 1990–1993 Recession?

It is widely believed that recessions are periods of accelerated structural change, with major reorganizations or adjustments being made under intense pressure. These changes are made to ensure the survival of firms, exploit opportunities created by difficulties facing other firms, or take advantage of temporary falls in the opportunity cost of initiating and carrying out changes. This line of argument suggests that we should expect to see firms making major changes in their investments in human capital, and in their industrial relations practices. Our results are only partially consistent with this view. What seems to be clear from the data generated by our surveys is that firms are not reluctant to make changes in their bargaining strategies and industrial relations systems. This should be no surprise. Unlike investments in plant and equipment, these changes do not require much cash, and the opportunity cost of making them is much lower in recessions than in booms. However, the observed changes in union recognition have not occurred primarily in firms that were severely affected by the recession. Increases in pay decentralization and reorganization of work-force arrangements were no more likely to be initiated by distressed firms than by firms only moderately affected by the recession. It follows, then, that the retreat of UK unionism observed during the 1990–3 recession was, in the main, a continuation of existing secular trends. The mild acceleration in the pace of change revealed by our survey may be cyclical, but the trend is unlikely to be reversed as recovery gathers pace.     

Corporate Restructuring in the UK during the Recession

This paper reports the results of a large scale survey of how UK firms are coping with the recession. Only a relatively small number of firms report being "extremely severely" affected by the recession, and these were firms with highly dispersed ownership structures, firms that grew unusually fast in the mid to late 1980s and holding companies. Among the responses to the recession identified by the survey was a substantial degree of organizational choice, effected mainly by closing plants. The most stable organizational form seemed to be the functional organization, while holding companies were the least.     

Changes in Wage-setting Arrangements and Trade Union Presence in the 1980s

In this paper we detail the results of a retrospective survey of changes in trade union and wage-setting arrangements in the 1980s for a sample of 558 UK companies. Our key findings are as follows. (1) Complete derecognition of unions in a firm was rare even in firms with low trade union density. (2) Partial derecognition in multi-plant firms was more common. Some 13 per cent of companies with recognized unions in 1984 had had at least partial derecognition by 1990. (3) Large falls in trade union density within a firm have also been rare, though small but observable declines have been commonplace. (4) The coverage of the closed shop has substantially declined, and this decline has been most marked in the last five years. Around one-quarter of firms with recognized unions in 1990, however, still had closed-shop arrangement for at least part of their work-force. (5) There has been no clear decline in the prevalence of multi-unionism or multiple bargaining units. (6) There has been a significant move away from national/industry-wide bargaining, towards negotiations at the individual company or more often the establishment level. (7) In the absence of collective bargaining there have been clear moves away from wage-setting by formal external links, such as wages councils and multi-employer agreements, and even away from worker consultation towards more managerial discretion. (8) In deciding wage settlements, managers are increasingly influenced by company performance and less by multi-employer wage settlements.