Ordering univariate distributions by entropy and variance

This paper examines the role of variance and entropy in ordering distributions and random prospects. There is no universal relation between entropy and variance orderings of distributions. But we place their relationship in the context of a stronger ordering relation known as dispersion ordering. Further, some conditions are identified under which variance and entropy order similarly when continuous variables are transformed. We also analyze parametric changes which do not disturb the agreement between these rankings. The results are conveniently tabulated in terms of distribution parameters.     

If You Provide It,Will They Read It? Response Time Effects in a Choice Experiment

Substantial effort is expended in the design of surveys, including the amount and type of information they contain. However, we often do not know how involved respondents are in reading and processing the informational content of a survey and making choices, and whether different levels of involvement result in systematic differences in estimated models. To address this issue, we recorded response times for each respondent of an internet‐based choice experiment for stream restoration. Response times per survey section and for the entire survey were used as proxies for the amount of involvement in reading information provided or answering choice questions. Response times per survey section fell rapidly, possibly signaling learning, use of heuristics, or attempts to quickly dispel with the survey. Response times were found to be independent of demographics and attitudes. Log‐likelihood ratio tests failed to reject the null hypotheses of equal coefficients and scale parameters across response time‐partitioned data. However, there exists an association between response times and the increasing learning curve or difficult choice trade‐offs, suggesting a heuristic response. Additional research on response time effects and survey design is needed, especially with the rise in electronic surveying media. D'énormes efforts sont investis dans la conception de sondages, notamment pour déterminer la quantité et le type d'information présentée. Toutefois, nous ne savons pas combien de temps les répondants consacrent à la lecture et au traitement de cette information et au choix des réponses, ni si les divers degrés de participation entraînent ou non des différences systématiques dans les modèles estimés. Pour s'attaquer à cette question, nous avons chronométré les personnes qui ont répondu à un sondage en ligne sur la restauration des cours d'eau. Nous avons utilisé le temps de réponse pour chaque section et pour le sondage au complet comme mesure approximative de l'effort des participants pour lire l'information et répondre aux questions. Pour chaque section, le temps de réponse diminuait rapidement, soit en raison des connaissances heuristiques des répondants, soit en raison de leur désir d'effectuer le sondage le plus rapidement possible. Le temps de réponse s'est révélé indépendant des caractéristiques démographiques et des attitudes des répondants. Des tests du rapport de vraisemblance n'ont pas rejeté les hypothèses nulles de coefficients égaux et de paramètres d'échelle de l'ensemble des données cloisonnées. Toutefois, il existe un lien entre le temps de réponse et la courbe d'apprentissage croissante ou la difficulté des choix, ce qui laisse supposer une réponse heuristique. Il faudrait effectuer davantage de recherche sur les effets du temps consacré pour répondre à un sondage et pour le concevoir, en raison du nombre croissant de sondages en ligne.     

Convergence within the EU: Evidence from Interest Rates

The economic and political changes which are taking place in Europe affect interest rates. This paper develops a two-factor model for the term structure of interest rates specially designed to apply to EMU countries. In addition to the participant country's short-term interest rate, we include as a second factor a 'European' short-term interest rate. We assume that the 'European' rate follows a mean reverting process. The domestic interest rate also follows a mean reverting process, but its convergence is to a stochastic mean which is identified with the 'European' rate. Closed-form solutions for prices of zero coupon discount bonds and options on these bonds are provided. A special feature of the model is that both the domestic and the European interest rate risks are priced. We also discuss an empirical estimation focusing on the Spanish bond market. The 'European' rate is proxied by the ecu's interest rate. Through a comparison of the performance of our convergence model with a Vasicek model for the Spanish bond market, we show that our model provides a better fit both in-sample and out-of sample and that the difference in performance between the models is greater the longer the maturity of the bonds.
(J.E.L.: E43, C510).     

Land use optimization in watershed scale

Managing a watershed for satisfying the inhabitant's demand is a difficult task if one has to maintain a reasonable balance between usually conflicting environmental flows and demands. The solution to these complex issues requires the use of mathematical techniques to take into account conflicting objectives. Many optimization models exist for general management systems but there is a knowledge gap in linking practical problems with the optimum use of all land resources under conflicting demands in a watershed. In the present study, an optimization problem has been formulated for the Brimvand watershed, Iran, comprising ca. 9572 ha to find out the most suitable land allocation to different land uses, viz. orchard, irrigated farming, dry farming and rangeland targeting soil erosion minimization and benefit maximization.     

Raising rivals' costs: The entry of an upstream monopolist into downstream markets

A regulated upstream monopolist provides an input to firms in a downstream market. If the monopolist enters the downstream market, a natural concern is that it will act so as to raise its downstream rivals' costs. An offsetting incentive is that a higher downstream price will reduce demand for the input, which reduces the monopolist's profit. Conditions under which one incentive dominates the other are derived. The monopolist may desire to lower its downstream rivals' costs rather than raise them. These findings suggest that regulatory policy towards such downstream entry should not focus exclusively on the ability to discriminate.     

Global Strategy in the Internet Era

This article examines the joint effects on business strategy of the Internet and globalization. It develops a framework for evaluating how the Internet affects the globalization potential of individual industries and the global strategies that companies should adopt. The impact of the Internet will not be uniform. Not only do its direct effects vary from one industry to another, but also it speeds up globalization at different rates in different industries. The article shows how to use the Internet to support five types of global strategy: market participation, products and services, activity location, marketing, and competitive moves.     

The geography of tourism: An introduction

The geography of tourism is limited by a dearth of published research in geographic journals, the relatively few individuals who actively participate in the sub-discipline, and the lack of prestige the subject matter specialty has in geography. Despite these imperfections geographers make important contributions to the study of tourism because of their unique point-of-view. This characteristic perspective is seen in the context of a conceptual frame-of-reference which consists of a matrix based on two trichotomies. An analysis and interpretation of this framework and its application to the nine substantive articles included in the special issue constitute a majority of the article.     

Quasitransitive social preference: why some very large coalitions have very little power

Summary. If only the strict part of social preference is required to be transitive then Independence of Irrelevant Alternatives implies that there is a coalition containing all but one individual that cannot force x to be socially ranked above y for at least half of the pairs of alternatives (x,y). Received: August 29, 1996; revised version: March 24, 1997