Futures markets,price stabilization and efficient exploitation of exhaustible resources

Markets for natural resource futures contracts and cash forward contracts experience a rapid growth. According to theory, this should result in more efficient resource depletion, implying that price formation is more consistent with Hotelling's rule. The rationale of this stabilization effect is briefly discussed. Next, we analyze the impact of expanding futures markets on the behaviour of individual resource owners trading on the cash market. Using a simple pulse extraction model, we demonstrate that the expected time of depletion can shift to the present or the future, and that utility of exploitation can go up or down, as market prices are stabilized.     

Match Specific Gains to Marriage: A Random Effects Ordered Response Model

A random effects ordered response model is used to analyze individuallife satisfaction. It is found that a substantial part of the unexplained variance in theindividual's life satisfaction can be ascribed to the household or marriage. It is further found thatthe age variable should be considered as a random effect on life satisfaction, i.e., an effectthat varies between households.     

Political Transition in DRC: How Did Kinshasa Households Fare?*

Abstract: Officially announced on 24 April 1990, the political transition in the Democratic Republic of Congo (DRC) would eventually culminate in presidential elections. By comparing the results of two household surveys, conducted in 1986 and 2004 respectively, we are able to trace the economic reflection of this process in the standard of living of the Kinois (the inhabitants of Congo's capital, Kinshasa). Although the exercise is fraught with methodological problems, it nevertheless generates some salient outcomes. First and foremost, the available evidence unanimously points to a slight increase in the general standard of living, thereby contradicting the official macro‐data. Further, given an increase in inequality, it is well possible that the period of transition was experienced increasingly unequally by different population groups. Third, one of the most significant changes observed is that Kinshasa has become more closely connected with world (food) markets. Meanwhile, the level of education of the principal income earner remains one of the main predictors of the level of household consumption, even in a thoroughly informalized economy.     

Conic quantization: stochastic volatility and market implied liquidity

Market implied liquidity links the pricing of European options under stochastic volatility with the Conic Finance theory of two prices     

Parents' perceptions, attitudes and behaviours towards child safety: a study in 14 European countries

Injury is the leading cause of death for children 0- 19 years of age in Europe, accounting for 3.1 deaths per 10 000 children per year. The youngest children of the ages 0-4 years require the most protection in this age group, with 2.5 injury-related deaths per 10 000 children in Europe annually. As parents are the primary caregivers of children, it is necessary to learn more about parents' perceptions, attitudes and behaviours towards child safety. This study presents the findings of a 14-country study in Europe on this theme. A quantitative survey of parents of children aged 5 years or under was performed in 14 EU member states in order to enable better targeting of prevention efforts aimed at educating parents. The total sample size was 2088. The results show that 95% of parents reported that they personally take measures to avoid accidental injury to their children. Their top concern with regard to safety of their children was children being hit by a car. The most common response, when asked why some parents find it difficult to protect their children from accidental injury, was not being able to watch their children constantly. Lack of awareness or knowledge about the causes of accidents was the second response. Two-thirds of parents would like to see more help from the government to prevent childhood injuries. Three-quarters of parents agreed that child injuries can be avoided. It was concluded that parents want to be better informed about the causes of child accidents and about actions they and society can take to reduce injury-related risks to children.     

Choosing governance modes for external technology sourcing

This study examines the effect of uncertainty on governance mode choice of interfirm relationships in new business development (NBD). We combine transaction cost economics and real options reasoning, arguing that in the early stages of NBD, where technological and market uncertainty are very high, companies are better off using governance modes that are reversible and involve a low level of commitment. When uncertainty has decreased as a result of prior R&D investments, transaction costs considerations become dominant and companies will shift towards governance modes that are less reversible and more hierarchical. We argue that technological distance leads to less hierarchical governance modes and prior cooperation between firms leads to subsequent choices for more hierarchical modes. Finally, we propose that higher exogenous uncertainty leads to less hierarchical governance modes.     

Modeling the Effect of Losing a Key Individual on Internal and External Relationships

This paper investigates the impact of losing a key individual in an inter-organizational relationship. It seeks to understand why this will cause some relationships to end while others will endure. A model illustrating the complexity of variables that influence relationship development, maintenance and ending is developed. It is suggested that the balance between the interpersonal and organizational elements of these variables will determine whether or not a relationship endures.     

From conflict to crisis in collaborative NPD

While manufacturer–supplier co-development of projects can contribute shared knowledge and expertise, such commitment also presents managerial challenges, particularly where crisis threatens the entire project. This paper explores how crisis is manifested, amplified, handled, and its outcomes in two longitudinal case studies, one between a food manufacturer and its packaging supplier and another between a window manufacturer and its software supplier. The analysis, the first to focus on co-development crisis, results in a better understanding of crisis episodes and in propositions around the crisis management challenges in co-developing new product projects.