A stability theorem for statistical experiments

Summary A theorem ofMüller [1974] on the convergence of statistical experiments on a polish space is extended to the abstract setting of a measurable space. The proof of the main result is remarkably elementary. The paper concludes with a discussion of several examples and counterexamples.     

The powerless yet relevant third: a three-player ultimatum/dictator game with earned funds and roles

We report the first experiment to pair a three-player ultimatum/dictator game with a real effort task. The inclusion of the real effort task shifts the standard for division from simple egalitarianism towards relative performance; even in treatments in which roles and funds are exogenous. Additionally, we find proposers overcompensate themselves relative to their effort, and this additional compensation comes at the expense of powerless (third) players. Individual characteristics predict the nature of a proposals. Lastly, we find that responders’ choice to accept is based on their own and the powerless third party’s compensation.     

Research into employee trust: epistemological foundations and paradigmatic boundaries

This article explores the epistemological roots and paradigmatic boundaries of research into employee trust, a growing field in human resource management. Drawing on Burrell and Morgan's well‐known sociological paradigms and their epistemological foundations, we identify the dominant approaches to employee trust research to examine its strengths and limitations. Our review of the literature on employee trust revealed that the majority of the most cited papers were written from a psychological perspective, characterised by positivistic methodologies, variance theory explanations and quantitative data collection methods. We also found that most of the studies can be located in the functionalist paradigm, and while accepting that functionalism and psychological positivism have their merits, we argue that research in these traditions sometimes constrains our understanding of employee trust in their organisations. We conclude that trust researchers would benefit from a better understanding of the ontological, epistemological and axiological assumptions underlying of HRM research and should embrace greater epistemic reflexivity.     

Advertising and the Professions

This article aims to assess the consequences for prices and consumer protection of permitting professional advertising. The need to protect consumers given their lack of knowledge in the buying of professional services is seen as explaining the role of professional self-regulation particularly with respect to entry standards. But the case is not so strong for advertising restrictions, and it is shown that there are logical reasons to expect such restrictions to raise fees without much protecting the consumer. Empirical studies are surveyed confirming the favourable effect of advertising on prices. The conclusion reached is that specific advertising of fees and specialism would not necessarily be costly to monitor and would bring benefits in terms of increased price competition.     

LABOUR MARKET REGULATION: SOME COMPARATIVE LESSONS

Labour market regulation that undermines freedom of contract leads to fewer, higher productivity jobs with employment being across a narrower range of ages. More people are excluded from the labour market, in highly regulated countries and they remain unemployed for longer. This seems to be damaging to welfare. It is possible that the extent of regulation is explained by the relative ability of those who gain from regulation (those in work) to influence the outcome of political processes to a greater extent than those who lose (the unemployed). However, the legal framework and legal traditions may also play a part.     

China: Coming to Grips with the New Global Player

This paper analyses China's economic performance in the last 25 years and discusses its prospect for growth in the future. Exports and investment have been the two driving forces for the high annual GDP growth rates. FDI plays an important role. However, structural issues such as the loss‐making state‐owned firms and the fragile banking industry have to be solved. Monetary policy is complicated by the accumulation of reserves which, however, provide an insurance for the fragile banking system. Property rights, a crucial element in transforming a communist society, are far from being clearly developed. Major policy issues in the future include the correction of the distorted growth process and of the institutional deficits, especially with respect to the rule of law and the lack of democracy.     

Germany’s Stalling Economic Engine – How to Get it Running Again

Summary The German economy, once the powerhouse in Europe, is stalling. Unemployment has ratcheted upward since 1970, the social security systems can no longer be financed (even if the population were not ageing) and with an average annual GDP growth rate of 1.2 per cent since 1995, the economy almost stagnates. This paper analyses and suggests solutions to Germany’s three main challenges. To undo the adverse incentives with respect to unemployment, the institutional design for wage formation should be decentralized, the reservation wage adjusted and the tax on labour reduced. To make the social security systems sustainable, the level of social absorption has to be lowered. And, finally, to achieve a more dynamic economy, new stimuli for growth have to be unleashed, including human capital formation and innovation, which are vital for the knowledge society. The role of government has to be rethought and the German social market economy redefined. Jelle Zijlstra Professorial Fellow at the Netherlands Institute for Advanced Study during September 2004–January 2005, Agip Professor in International Economics at Johns Hopkins in Bologna and President-Emeritus, Kiel Institute of World Economics. The paper is a revised version of the Jelle Zijlstra Lecture, held on January 13, 2005 at the Free University of Amsterdam.     

The Impact of R&D Cooperations and Mergers in Pharmaceuticals on Research Activities and Drugs Offered on the Market

In the last 10 years, the pharmaceutical industry has experienced steep, unprecedented price increases which are frequently attributed to increasing drug development costs. To cope with rocketing development costs, companies engage in Research and Development (R&D) cooperations. We study the impact of R&D cooperations on firms' research activities and drugs offered on the market. Using a comprehensive dataset, we find that R&D cooperations formed at the early stage of the drug development process increase the number of R&D projects and the number of drugs offered on the market. Late stage R&D cooperations, formed among larger firms in technology and product markets, increase firms' research activities, but reduce the number of drugs launched on the product market. Results suggest that large firms cooperating in the late research stage re‐optimize their R&D pipelines and eliminate similarly aligned research projects.     

Time Allocation Decisions Associated with Job Market Preparation: Undergraduate Perceptions versus Market Realities

A survey of agribusiness firms identifies characteristics associated with above average starting salary offers in the allied fields of agribusiness, agricultural economics, business, and economics. A complementary survey is made of students at Texas A&M University and University of Georgia. Results show that firms value work experience and leadership experience more than students do, whereas students value raising grade point average and interview preparation more than do firms. Students seeking a firm's maximum starting salary offer will need to enhance academic performance with substantial work experience and leadership experience.