Mutual Fund Survivorship

This article provides a comprehensive study of survivorshipissues using the mutual fund data of Carhart (1997). We demonstratetheoretically that when survival depends on multiperiod performance,the survivorship bias in average performance typically increaseswith the sample length. This is empirically relevant becauseevidence suggests a multiyear survival rule for U.S. mutualfunds. In the data we find the annual bias increases from 0.07%for 1-year samples to 1% for samples longer than 15 years. Wefind that survivor conditioning weakens evidence of performancepersistence. Finally, we explain how survivor conditioning affectsthe relation between performance and fund characteristics.     

Relationship marketing,audience retention and performing arts organisation viability

Marketing strategy in performing arts organisations has become particularly important in the increasingly competitive environment in which the arts operate. Since the late 1980s there has been a necessary shift in focus to audience development away from product development. This change in focus is being encouraged to ensure the long‐term viability of performing arts organisations (PAOs) and micro‐economic reform. While government reports have recommended strategies aimed at building audience‐based recognition, this is an expensive approach for many PAOs and does not produce short‐term returns. Little attention has been paid to building enduring relationships with existing audiences as a way of having a more dramatic impact on PAOs' long‐term viability. This paper explores this theme through relationship marketing and the implication of retaining existing audiences. The paper identifies the changing cultural environment which has led to the importance of marketing. It then explains the concepts of relationship marketing and its pertinence to PAOs' viability by presenting a loyalty ladder. The structure is modelled as a dynamic conceptualisation of the relationships (audience and organisation) to assist arts managers to decide whether to focus their efforts on catching or keeping customers to maximise earned income. Copyright © 2002 Henry Stewart Publications     

An empirical test of the cultural capital hypothesis

Using data from the Multi-City Survey of Urban Inequality, an exploratory, empirical analysis of the cultural capital hypothesis was conducted. The analyses indicate that, while the types of cultural influences cited by proponents of this thesis clearly have negative effects on employment when viewed in isolation from other factors, they are not significant when statistical controls for human capital variables are incorporated into the model. Our findings suggest the need to invest more resources in the public education system and in efforts to combat racial discrimination in the labor market.     

Nash equilibrium search for the best alternative

In a recent paper, Weitzman (Econometrica47 (1979) 641–654) described a policy of “optimal search for the best alternative.” The present paper is concerned with the development and characterization of a policy of “Nash equilibrium search for the best alternative.” Specifically, it is shown that, under certain monotonicity assumptions, and under the assumption that firms have incomplete information regarding the results of rivals' search behavior, a Nash equilibrium search policy exists and has the same form as Weitzman's optimal search policy.     

Encouraging pro-environmental behaviour: the role of sustainability-focused events

Tourism is a potential setting for encouraging sustainable behaviour. One popular mechanism is to stage events with a sustainability focus, aimed at fostering behaviour change amongst attendees. This paper reports on a study of a sustainability-focused event in Australia. The Transtheoretical Model (TTM) was used to explore if and how this event could potentially promote pro-environmental behaviour change amongst attendees. TTM provides a five-stage framework, linked to a series of 10 processes of change, with both attitudinal and behavioural dimensions. The stages comprise pre-contemplation, contemplation, preparation, action and maintenance. Findings suggest that this event attracts individuals already significantly committed to sustainable behaviour who are using the event as a source of encouragement and positive feedback for their lifestyle choices. They are not the audience that the organisers need to reach in order to achieve their aim of behaviour change on a broader scale. This event did, however, support the processes of change, particularly for those in the “action” and “maintenance” stages. This paper considers the implications of these findings and TTM as a research tool for the future promotion and marketing of these events to tourists, possible applications to tourism fairs and exhibitions, and to behavioural change in tourism generally.