Optimal information transmission in organizations: search and congestion

We propose a stylized model of a problem-solving organization whose internal communication structure is given by a fixed network. Problems arrive randomly anywhere in this network and must find their way to their respective specialized solvers by relying on local information alone. The organization handles multiple problems simultaneously. For this reason, the process may be subject to congestion. We provide a characterization of the threshold of collapse of the network and of the stock of floating problems (or average delay) that prevails below that threshold. We build upon this characterization to address a design problem: the determination of what kind of network architecture optimizes performance for any given problem arrival rate. We conclude that, for low arrival rates, the optimal network is very polarized (i.e. star-like or centralized), whereas it is largely homogenous (or decentralized) for high arrival rates. These observations are in line with a common transformation experienced by information-intensive organizations as their work flow has risen in recent years.     

UK IPO underpricing and venture capitalists

We analyze the nature and causes of short-run underpricing for a unique sample of 591 Initial Public Offers (IPOs) issued on the London Stock Exchange for the period 1985–2003. We find significant differences between the 1998–2000 bubble years and the rest of the sample. Venture capitalists and reputable underwriters played a certification role in the latter period but not during the bubble years. These years featured significant increases in underpricing, money left on the table, and a decline in operating quality. The combination of venture capitalists and prestigious underwriters was increasingly associated with the highest underpricing witnessed during 1998–2000, which provides indirect support for the spinning hypothesis.     

Risk perception as a determinant of in-home consumption

Groups of consumers who were exposed to equal opportunities to purchase from a catalog but exhibited contrasting purchase behaviors were compared in terms of their risk perception. The findings substantiate the importance of perceived risk and inclusive vs. exclusive perceived error tolerance strategies as factors influencing in-home consumption behavior.     

Local identifiability of the factor analysis and measurement error model parameter

Measurement error regression models are factor analysis models, the latent ‘correct’ regressors are the factors. There is however no common statistical method between the factor analysis and the regression model, because the covariance elements that are known identifying constituents of the former model are unknown in the latter. Instead, the idea that the data come from the same regression model, as with panel data, but can be grouped in two or more groups, each group having its own different regrressor generating process, is shown to supply credible restrictions. We generalize and compare relevant identifiability criteria and corresponding asymptotically efficient estimators that are recursive in the number of overidentifying restrictions.     

Mode choice,transport structure and urban land use

A theoretical model of the urban land market is solved to examine the impact of bimodal passenger transportation on equilibrium residential land use. In this model travel to the central business district occurs on a dense system of radial roads or bus routes and a competing system or radial expressways or mass transit lines fed by a subsidiary system of densely spread access streets. Under rational behavior assumptions for households, it is shown that various basic urban forms can result depending on the relative generalized cost characteristics of the competing dense and sparse radial networks. The basic urban forms yield fundamental shapes, differing as to the relative geometry and position of the market areas for the two modes. The standard Alonso-Muth model of unimodal travel and circular urban form is found to result as a special case in several of these cases. American urbanized areas of various sizes and modal mix provide plausible examples for each of the basic forms. The paper concludes with a discussion of the model's implications as a framework for examining optimum urban transport structure and the proliferation of transport routes as a function of urban size.     

The growth of growth

The author argues that there is a natural growth of growth, which a nation follows as it develops : from slow to fast, and then a return to slow growth rates with the arrival of post-industrial society. The existing gap between the rich and the poor nations is both a result of this pattern and a necessity for raising the income of less-developed countries. Policies which will slow growth and redistribute wealth are precisely the opposite of what is needed today. The poor will get richer because the rich get richer. The author outlines the factors acting to accelerate economic growth in the developing countries and to slow it in the developed countries. Once this transition has been successfully managed the world will be much better equipped to manage the real problems facing it.     

TECHNOLOGICAL CHANGE IN THE CANADIAN LIVESTOCK INDUSTRY: AN INPUT-OUTPUT APPROACH1

This paper uses input-output analysis to quantify the interdependence among the livestock industry and other related industries, and to develop within-agriculture multipliers based on these inter-relationships. The study uses the technique developed to analyze the rate of technological change within the beef industry, and to project domestic demands for beef and pork, and labor requirements in meat processing to 1975. Major conclusions are 1) that income linkages for agricultural production are large, although multipliers developed in this study tend to be less than those of other recent work, an expected condition reflecting their intra-agriculture nature; 2) that little improvement occurred in the efficiency of the total livestock industry between 1951 and 1961; 3) that Canadian beef and pork requirements are forecast to increase by 5.2 and 4.5 per cent annually, respectively, to. 1975, and 4) that substantial increases are forecast in labor requirements in meat processing. CHANGEMENT TECHNOLOG1QUE DANS ?INDUSTRIE DU BETAIL AU CANADA - UNE METHODE ?ANALYSEDESINTRANTSETEXTRANTS -Cette étude utilise ?analyse des intrants et extrants pour déterminer ?interdépendance de ?industrie du bétail et ?autres industries connexes, et pour établir des multiplicateurs au sein de ?agriculture fondés sur ces interpénétrations. ?étude se serf de la technique élaborée pour ?analyse du taux de changement technologique dans ?industrie bovine, et pour ?extrapolation de la demande intérieure pour le boeuf et le pore de boucherie, et.les besoins de main-d'oeuvre dans la préparation de la viande jusqu'à 1975. Void les principales conclusions: 1) que les enchaînements de revenu dans la production agricole sont considérables, bien que les multiplicateurs établis dans la présente étude soient moindres que ceux ?autres récents travaux, une condition vraisemblable qui reflète leur nature intra-agricole; 2) que ?efficacité de ?ensemble de ?industrie du bétail s'est très peu améliorée de 1951 a 1961; 3) qu'on prévoit que les besoins canadiens de boeuf et de pore de boucherie augmenteront de 5.2 et 4.5p. 100par année, respectivement, jusqu'à 1975; et 4) qu'on prévoit des augmentations considérables dans les besoins de main-d'oeuvre dans le secteur de la préparation de la viande.