Interconnected games and international environmental problems

The purpose of this paper is to introduce the concept of interconnected games and to show its relevance for modeling international environmental problems. It is argued that an interconnected game approach to international environmental problems may enhance cooperation and provide an alternative to the use of financial side payments to induce countries to cooperate. Two types of interconnected games are distinguished in this paper, i.e. direct sum games and tensor games. In the former all the constituting isolated games are games in strategic form and in the latter they are repeated games. In both cases the interconnected game can be interpreted as a multiple objective game, but only the setting where a trade-off is made for the vector-payoffs is considered. In addition to the formal definition of these types of interconnected games, some elementary results concerning Nash equilibria of such games are derived.Folmer and v. Mouche: Landbouwuniversiteit Wageningen, Postbus 8130, 6700 EW Wageningen, The Netherlands; Ragland: University of Colorado at Boulder, Boulder, Colorado 80309-0256, U.S.A. An earlier version of this paper was presented at the EAERE conference in Stockholm, June 1991. The authors appreciate comments made by conference participants and journal referees.     

Derivative financial instrument use in Australia

This paper examines the relation between derivatives use and financial characteristics of Australian industrial and mining firms. The firm characteristics proxy for financial distress, tax losses, managerial ownership, growth opportunities, the ability to generate operating cash flows and liquidity. We also control for firm size, dividends and exposure to foreign exchange risk. The results show that firm size and leverage are the main explanatory variables for derivative use for both industrial and mining firms     

The Maximum Sustainable Yield of Artisanal Fishery in Zanzibar: A Cointegration Approach

The objective of this study is to analyze the scope for expanding theartisanal fishery in Zanzibar and to present cointegration as an econometricmethod to estimate the maximum sustainable yield (MSY) in fishery. For thatpurpose the Schaefer and Fox surplus production models are considered.Application of cointegration is discussed to test whether there is atendency to long run equilibrium between catch and effort as assumed bythe surplus production models and implied by the MSY concept. Moreover,estimation of the parameters is dealth with. Application to data relating toartisanal fishery in Zanzibar shows that there is support for a Fox model.Moreover, we find that the current catch is only about 40 percent of theestimated MSY, but the prevalent effort is about two times bigger than theestimated optimum effort. It appears therefore that the fishery in Zanzibaris biologically overfished.     

Developing a common standard for authentic restaurants

This paper investigates the paradox of authenticity versus standardisation. It examines the features that constitute restaurant authenticity and determines whether these can be standardised within an alliance of top restaurants to reap the benefits of commonalities among the restaurants. We determine the features of authenticity by examining the literature, by interviewing owners and managers of alliance restaurants and by means of a consumer survey. The results show several discrepancies. Combining these three data sources allowed us to distinguish between essential and peripheral features of authenticity. This distinction can help to define a standard for restaurant authenticity, specifying minimum levels for essential features of authenticity.     

Costs and benefits of livestock systems and the role of market and nonmarket relationships

In developing countries livestock are kept not only for their physical products, but also for insurance, financing, and to display status. Though this range of purposes is acknowledged, livestock policies nevertheless often emphasize physical production: a limited perspective that hampers the formulation and implementation of effective livestock policies. This article presents a comprehensive appraisal of costs and benefits of livestock systems that takes into account the institutional environment of livestock keepers. Indicators are developed that capture, quantify, and organize not only the benefits resulting from the physical production, but also those from the intangible functions. The method is illustrated by an analysis of cattle in the Western Province of Zambia. The results indicate that the perspective on livestock systems developed more closely reflects the observed decisions of the livestock keepers.     

Standardization as emerging content in technology education at all levels of education

Integration of standardization into different levels of technology education has surfaced as a critical issue for educational practitioners and policy makers at national and regional (APEC, EU) level. In this paper, we describe and analyze empirical data collected from 118 educational experiences and practices about technology standards and standardization in 21 countries of a regional variety. Specifically, this research examines standardization education programs these countries have implemented, and explores suggestive indications for the design and development of an educational policy for standardization. Online surveys, offline interviews, face-to-face meetings and case studies have been used to determine the way these standardization education programs are segmented and implemented in different contexts. The findings are consolidated into a framework for standardization education. The framework presents an applicable combination of target groups (who), appropriate learning objectives (why), probable program operators (where), prospective contents modules (what), and preferred teaching methods (how). This framework may contribute to planning and implementing more inclusive standardization education programs.     

Time-varying rare disaster risk and stock returns

This study provides empirical support for theoretical models that allow for time-varying rare disaster risk. Using a database of 447 international political crises during the period 1918-2006, we create a crisis index that shows substantial variation over time. Changes in this crisis index, our proxy for changes in perceived disaster probability, have a large impact on both the mean and volatility of world stock market returns. Crisis risk is positively correlated with the earnings-price ratio and the dividend yield. Cross-sectional tests also show that crisis risk is priced: Industries that are more crisis risk sensitive yield higher returns.