Regulating,joint bargaining,and the demise of precedent

Recent decades have seen a fundamental shift in the nature of economic regulation in the United States. Unauthorized by congress, and largely unnoted in legal and academic circles, regulatory agencies such as the Federal Communications Commission have changed the regulatory process by linking otherwise unrelated regulatory issues. Examples include tying merger approval to firm commitments to engage in conceptually unrelated build‐outs and other projects of political importance. This linking of issues has several effects, the most prominent being (a) tying regulatory issues changes the outcomes obtained, plausibly in predictable ways; (b) tying in some circumstances allows regulators to extend their authority to issues for which they have little or no legal authority; and (c) tied regulatory bargaining fails to produce valid legal precedent for firm decision making. We provide an analysis of these conclusions by examining the increasing use of consent decrees, voluntary merger commitments, and merger conditions by the Federal Communications Commission, referencing our discussion with a simple model of joint bargaining applicable to regulatory practice.     

Competition,Innovation and the Use of Innovations

I examine the effect of competition on the production and use of innovations using evidence from a natural experiment of policy reform, the introduction of cartel legislation in the U.K. in the late 1950’s. I compare manufacturing industries which had been collusive and were therefore affected by the policy with those that had been competitive and were not affected. The intensification of competition following the abolition of cartels caused a short‐run decrease in innovations produced, but had no significant effect in the long run. In contrast, innovations used increased both in the short run and in the long run.     

Democracy across Gender Diversity and Ethnicity of Middle Eastern SMEs: How Does Performance Differ?

This paper examines the relationship between boards of directors' demographic diversity and firms' financial performance. In particular, we highlight how women and ethnic minorities can affect Middle Eastern SMEs' financial performance. Using an unbalanced panel of 1,855 firm‐year observations of 371 boards of directors from nine Middle Eastern countries, our results support the positive impact of women and ethnic minority group members on Middle Eastern firms' performance. However, our evidence implies that when Western ethnic minority members increase, firms' performances tend to decrease, because these board members are appointed for regional and international board reputation legitimacy, personal business agendas, and links to the external corporate environment.     

Gender wage gaps and economic crisis in Greece

ABSTRACT

We examine gender wage gap (GWG) in Greece for 2013, by using a survey data set. Our findings show first, that the unadjusted GWG is 15.3%, while European Commission reports a value of 15%. Secondly, we derive the ‘adjusted’ GWG, using the Oaxaca and Ransom (OR) and the Juhn, Murphy and Pierce (JMP) methods to be ranging from 10% to 13.6%. Thirdly, looking into the behaviour of the full population, we find a decreasing trend for the discrimination effects, an increasing trend for the residuals effects and a ‘random’ endowments effects while moving to higher deciles. These three effects are associated to the economic crisis 2008–2015. Fourthly, our findings do not show evidence of either a ‘glass ceiling’ effect or a ‘sticky floor’ effect. Finally, that there is strong evidence that investing in higher education reduces the wage discrimination between sexes.     

Governance and strategy of entrepreneurial networks: an introduction

This special issue focuses on empirical and theoretical papers that help us to better understand the strategy and governance of entrepreneurial networks, such as franchise chains, alliances, and cooperative networks. The following central themes are covered: (I) Which formal governance mechanisms do entrepreneurial networks use in order to reduce transaction cost/agency cost and to increase strategic value? (II) What is the role of relational governance mechanisms (such as information exchange and social ties) for the performance outcomes in franchise chains and cooperatives? (III) Which alliance strategies do entrepreneurial firms pursue to realize a competitive advantage, and what is the impact of resources and capabilities on performance outcomes of entrepreneurial firms. To address these issues, insights from organizational economics (transaction cost theory, agency theory, signaling theory), strategic management perspectives (resource-based, knowledge-based and organizational capabilities theory), entrepreneurship theory and the relational governance view are used.     

Local formal interpersonal networks and SMEs internationalisation: Empirical evidence from the UK

This article uses data from the UK Longitudinal Small Business Survey (2015) to empirically test the relationship between local (formal and informal) interpersonal networks and exporting. Our results suggest that local interpersonal networks increase the likelihood of exporting. More importantly, we find that the role of formal interpersonal networks (e.g. accountants) on internationalisation increases as firm size increases, while the link between informal interpersonal networks (e.g. family) and exporting becomes weaker. We argue that larger firms have more complex operations and diverse structures than smaller firms that require the engagement of formal interpersonal networks to help with the internationalisation process.     

International trade of GMO-related agricultural products

This paper examines the international trade of a variety of genetically modified (GM) food products over a 27-year period (1984–2011) with data from the United Nations using the tools of social network analysis. The results indicate that each of the different crops have a distinctive pattern of trade that has changed over time due to a number of different factors. Also, trade in agricultural commodities became more diversified over time, dominated less by the United States and other nations central in the trade networks and trade in the individual GM crops was stable over time. Countries maintained their trading partners for specific crops, despite the adoption of the genetically modified varieties. The economic implications of these results are discussed for specific countries.     

A Vector Error Correction Model for Japanese Real Exports

Atlantic Economic Journal - Japanese exports did not immediately react to the depreciations of the yen after a change in the economic policy framework in 2012, with the launching of Abenomics. This...