WAGES,HOURS OF WORK AND JOB SATISFACTION OF RETIREMENT‐AGE WORKERS*

I analyse, theoretically and empirically, the effects of pension benefits, family conditions and the personal characteristics of older individuals on their labour supply, wages, hours worked and job satisfaction, in the framework of the Nash bargaining condition whereby an older worker and a firm bargain over employment conditions such as wages, hours of work and job investment. It is stressed that as workers become older they tend to give greater priority to the number of hours worked, work environment and type of job than to wages, and try to improve these through job investment, even at the cost of lower wages.     

INDIRECT NETWORK EFFECTS AND THE PRODUCT CYCLE: VIDEO GAMES IN THE U.S., 1994–2002*

We examine the importance of indirect network effects in the U.S. video game market between 1994 and 2002. The diffusion of game systems is analyzed by the interaction between console adoption decisions and software supply decisions. Estimation results suggest that introductory pricing is an effective practice at the beginning of the product cycle, and expanding software variety becomes more effective later. We also find a degree of inertia in the software market that does not exist in the hardware market. This observation implies that software providers continue to exploit the installed base of hardware users after hardware demand has slowed.     

College Quality and Earnings in the Japanese Labor Market

The motivations underlying the pursuit of college prestige in Japan presumes a labor market that rewards workers according to the quality of the college that they attended. Yet studies that examine the relationship between college quality and earnings in Japan remain few and are riddled with shortcomings. This article examines the returns to college education among Japanese men using a 1995 cross-sectional data set. I find that college quality significantly improves earnings. My findings confirm that college quality plays a crucial role in shaping incentives and earnings in the Japanese labor market.     

CAPACITY EXPANSION IN MARKETS WITH INTER‐TEMPORAL CONSUMPTION EXTERNALITIES

This paper analyses market capacity expansion in the presence of inter‐temporal consumption externalities such as consumer learning, networks and bandwagon effects. An externality leads to an endogenous shift of market demand that responds to past market capacity. Whereas market capacity grows in waves, its magnitude depends on the degree of market concentration. The competitive environment contributes to S‐shaped time patterns of market capacity expansion. On the other hand, using a low introductory price, a monopolist plans an initially larger amount of market cultivation than a competitive market capacity expansion.     

High Performance Work Practices and Employee Voice: A Comparison of Japanese and Korean Workers

Using a unique new cross‐national survey of Japanese and Korean workers, we report the first systematic evidence on the effects on employee voice of High Performance Work Practices (HPWPs) from the two economies that are noted for the wide use of HPWPs. We find for both nations that: (i) workers in firms with HPWPs aimed at creating opportunities for employees to get involved (such as shopfloor committees and small group activities) are indeed more likely to have stronger senses of influence and voice on shopfloor decision making than other workers; (ii) workers whose pay is tied to firm performance are more likely to have a stake in firm performance and hence demand such influence and voice; and (iii) consequently workers in firms with HPWPs are more likely to make frequent suggestions for productivity increase and quality improvement. As such, this paper contributes to a small yet growing new empirical literature that tries to understand the actual process and mechanism through which HPWPs lead to better enterprise performance.     

Convex Structure of the Constrained Least Square Problem for Estimating the Forward Rate Sequence

We will show that the constrained least square problem proposed inKonno and Takase [5] for estimating the forward rate sequence by usingthe market prices of default-free non-callable coupon bonds is in facta convex minimization problem under more general conditions than thoseassumed in the subsequent paper by the same authors [6]. Consequently,the constrained least square approach can generate a smooth andaccurate forward rate sequence very fast by standard convexminimization algorithms.     

BREACH OF CONTRACTS AND RENEGOTIATION IN CORPORATE TAKEOVERS*

This paper provides a formal model in which incumbent managers and workers sign a labour contract in the face of takeover pressures. We consider the possibilities: (i) workers can enhance their productivity by making an investment in specific human capital; (ii) a raider and workers will renegotiate the original contract after a takeover; and (iii) both the incumbent managers and the raider are concerned about their own reputations for being trustworthy in their contract arrangements. The main result shows that under certain conditions, a threat of takeovers forces the incumbent managers to select fewer investments in specific human capital even before a takeover although the incumbent managers have no incentive to behave opportunistically in the absence of takeover threats.     

Some Implications of Uncertainty in a Small Open Economy

Consider a small open economy which produces two commodities, the first a consumers' good and the second a producers' good, by means of a conventional no-joint-products technology. Suppose that one of the two production functions is subject to a random multiplicative disturbance and that factors of production must be allocated to the two industries before the realization of the random variable. It is known that if in the absence of uncertainty production is incompletely specialized then the same is true under uncertainty although the average output of the uncertain industry is lower. In the present paper we suppose that each of the two production functions is subject to a random multiplicative disturbance but restrict our attention to three particular cases: the polar cases of perfect correlation, positive and negative, and the intermediate case of zero correlation. It is shown that in none of these cases does there exist an obvious and complete analogue of the above proposition but that in each case something definite can be said, either about the possibility of complete specialization under uncertainty or about the effect of uncertainty on the allocation of factors (but not about both).