Asymmetric information and agenda control: The bases of monopoly power in public spending

A pervasive empirical finding, widely known as the ‘flypaper effect’, is that lump-sum intergovernmental grants generate considerably greater public spending by the recipient jurisdiction than would be predicted by equivalent shifts in personal income in that jurisdiction. Moreover, such observations are inconsistent with standard median voter models of the political process. We posit a model in which it is in the interest of suppliers of a collectively provided good not to generate full information to voters about outside aid. The empirical results are consistent with ‘flypaper’ and suggest that voters are very poorly informed about outside grants.     

DIMENSIONAL SIMPLIFICATION AND ECONOMIC THEORIES OF LEGISLATIVE BEHAVIOR

In many many places, the political parties and political contests seem to array themselves along a single dimension. If you look at their programs in detail it always turns out that it's much more complicated than that. But it would appear that in the minds of the voters they are literally frequently arrayed on a single continuum which, as a result of the organization of the French chamber of deputies, is usually referred to as a left/right.     

The influence of complementarity, compatibility, and relationship capital on alliance performance

Value creation through alliances requires the simultaneous pursuit of partners with similar characteristics on certain dimensions and different characteristics on other dimensions. Partnering firms need to have different resource and capability profiles yet share similarities in their social institutions. In this article, the authors empirically examine the impact of partner characteristics on the performance of alliances. In particular, they test hypotheses related to both direct impact of partner characteristics on alliance performance and indirect effects through relational capital aspects of the alliance. Empirical results based on a sample of alliances in the global construction contracting industry suggest that complementarity in partner resources and compatibility in cultural and operational norms have different direct and indirect effects on alliance performance. Accordingly, organizational routines aimed at partner selection need to be complemented by relationship management routines to maximize the potential benefits from an alliance. MB Sarkar (Ph.D., Michigan State University) is an assistant professor of marketing at the University of Central Florida. His current research includes strategic alliances, innovation and entrepreneurship, knowledge management, and electronic markets. His research has been published in theStrategic Management Journal, theJournal of International Business Studies, and theJournal of Business Research, among others. Raj Echambadi (Ph.D., University of Houston) is an assistant professor of marketing at the University of Central Florida. His current research interests include investigation of territorial loyalty issues, management of innovations, and estimation issues pertaining to structural equation modeling and Partial Least Squares. His research has been published in theStrategic Management Journal, Multivariate Behavioral Research, and theJournal of Product Innovation Management. S. Tamer Cavusgil (Ph.D., University of Wisconsin) is University Distinguished Faculty and serves as the John William Byington Endowed Chair in global marketing at Michigan State University (MSU). He is also the executive director of MSU's Center for International Business Education and Research, a national resource center. His teaching, research, and administrative activities have focused on international business and marketing. His research has been published in theJournal of Marketing, theJournal of Marketing Research, and theJournal of International Business Studies, among others. His specific interests include the internationalization of the firm, global marketing strategy, and internationalization of business education. He was the founding editor of theJournal of International Marketing, now published by the American Marketing Association. Preet S. Aulakh (Ph.D., University of Texas at Austin) is an associate professor of strategy and international business at the Fox School of Business and Management, Temple University. His research focuses on international technology licensing, cross-border joint ventures and strategic alliances and strategies of firms from developing economies. His research has been published in theAcademy of Management Journal, theJournal of Marketing, and theJournal of International Business Studies.