Preventing the “Abuses” of Democracy: Hayek,the “Military Usurper” and Transitional Dictatorship in Chile?

Hayek famously claimed that he would prefer a “liberal” dictator to “democratic government lacking in liberalism.” While Hayek's views of the Pinochet regime have generated much controversy, surprisingly little has been written about Hayek's defense of transitional dictatorship. Making use of previously un‐translated foreign language archival material, this paper helps shed light on Hayek's views of authoritarianism, totalitarianism, transitional dictatorship, and the Pinochet regime as well as helping to separate Hayekian ‘fact’ from Hayekian ‘fiction’.     

Why in rugby union does “Toulouse” mean “to win”? Estimation of a production function of sports results (2011–2016)

The objective of this article is to understand more fully the determinants of sports performance. To do this, we estimate a production function of sports results that explains the results of the Toulouse rugby union team's matches expressed as the gap in points between it and its opponents. To the best of our knowledge, this is the first time that a production function has been estimated in rugby union. In addition, it is one of the few production functions specified at the match level. The study confirms the relevance of some variables already identified in the literature, such as home advantage, ranking, the role of the referee, and in‐match statistics. It also shows the influence of new variables, such as weather conditions and the relative strength of fielded teams measured by comparing the teams selected on match day to the ideal teams defined at the beginning of the season.     

“When Should Manufacturers Want Fair Trade?”: New Insights from Asymmetric Information when Supply Chains Compete

We study a model of competing manufacturer/retailer pairs where adverse selection and moral hazard are coupled with promotional externalities at the downstream level. In contrast to earlier models mainly focusing on a bilateral monopoly setting, we show that with competing brands a ‘laissez‐faire’ approach towards vertical price control might not always promote productive efficiency. Giving manufacturers freedom to control retail prices is more likely to harm consumers when retailers impose positive promotional externalities on each other, and the converse is true otherwise. Our simple model also suggests that, with competing supply chains, consumers and manufacturers might prefer different contractual modes if promotional externalities have substantial effects on demands.     

“Why did I do this?”: Understanding leadership behavior through a dynamic five‐factor model of leadership

Leadership theories referring to complex adaptive system theory (CAS) describe leadership as a dynamic process of interdependent, cooperating agents. However, research on leadership behavior focuses mainly on the leader as an influencing, active agent. This article offers a different perspective by focusing on factors that influence leadership behavior. A dynamic five‐factor model of leadership is introduced, which identifies (1) the leader's individual competence, (2) the group, (3) the organization, (4) the context, and (5) the immediate situation as all influencing factors on leadership behavior. To address the problem of the procedural nature of leadership behavior, the dynamic five‐factor model is combined with a scenario‐based approach. The scenario approach focuses on situational developments in a given context, whereby a previous situation influences a leader's behavior in the subsequent situation. By integrating the dynamic five‐factor model into a scenario approach, one can understand a leader's behavior in its procedural nature. The practical usability of the dynamic five‐factor model and the scenario approach was assessed in a leadership development program with 81 military officers. Structured feedback from participants indicated that the model and the approach were perceived as helpful and relevant for understanding leadership behavior.     

Why do some hospital leaders “speak no evil” about their organizations' medical errors?

Sentinel events, preventable medical errors resulting in serious disability or death, are a significant problem for hospital leaders. Accreditation agencies, such as the Joint Commission, urge hospitals to voluntarily disclose information about medical errors. However, some healthcare leaders “speak no evil” by choosing not to release sentinel‐event data. In an effort to increase the reporting of medical errors, several states passed laws mandating disclosure of sentinel events to the government. The state‐reported medical error rates of Indiana hospitals were compared with their leaders' perceptions of quality of care. Regardless of the number of sentinel events occurring at their hospitals, leaders consistently claimed their organizations provided high‐quality care. Two theories, rationalization and gaming, are presented to explain why leaders do not acknowledge the presence of serious quality‐management problems in their organizations.     

“So Much Technology,So Little Talent”? Skills for Harnessing Technology for Leadership Outcomes

Advanced information and communication technologies are impacting the ways groups and individuals collaborate, communicate, and engage. Such changes also have impacts on the leadership process. By reviewing the literature on e‐leadership and technology‐centered fields, the current article provides recommendations and implications for leading in online environments.     

Jevons and Menger Re-homogenized: Who Is the Real “Odd Man Out”?A Comment on Peart

Abstract . Response to Sandra J. Peart, “Jevons and Menger Re-homogenized?: Jaffé After 20 Years,” 1998. The American Journal of Economics and Sociology 57(July): 307–325.     

Testing for jumps when asset prices are observed with noise–a “swap variance” approach

This paper proposes a new test for jumps in asset prices that is motivated by the literature on variance swaps. Formally, the test follows by a direct application of Itô’s lemma to the semi-martingale process of asset prices and derives its power from the impact of jumps on the third and higher order return moments. Intuitively, the test statistic reflects the cumulative gain of a variance swap replication strategy which is known to be minimal in the absence of jumps but substantial in the presence of jumps. Simulations show that the jump test has nice properties and is generally more powerful than the widely used bi-power variation test. An important feature of our test is that it can be applied–in analytically modified form–to noisy high frequency data and still retain power. As a by-product of our analysis, we obtain novel analytical results regarding the impact of noise on bi-power variation. An empirical illustration using IBM trade data is also included.     

‘What problems you got?’: managerialisation and union organising in the voluntary sector

This article explores how government public service modernisation policies have impacted on management practices and employment conditions in voluntary sector welfare organisations and the problems unions have encountered in responding to such impacts in the context of public service modernisation. The study finds that employees encounter problems developing workplace union organisation and unions face problems developing a coherent strategy on support for the sector and for resisting public sector reform, which hinders trade union resistance. The implications of this may be important in strengthening managerial control over the public service labour process.     

Widening the ‘representation gap'? The implications of the ‘lobbying act’ for worker representation in the UK

The Transparency of Lobbying, Non‐Party Campaigning and Trade Union Administration Act 2014 (the ‘Lobbying Act’) imposes tight restrictions on the campaigning and lobbying activities of civil society organisations in the UK, diminishing their capacity to represent the interests of working people and thus likely compounding the ‘representation gap’ within British workplaces. Along with austerity measures and employment law reforms, the legislation exemplifies the UK government's attempts to shift the balance of power further towards employers.     

‘Tuning Out' or ‘Tuning in'? Mobile Music Listening and Intensified Encounters with the City

Mobile music listening has become an increasingly pervasive part of urban life. Yet it represents an area of enquiry with which urban studies scholars have yet to engage meaningfully. This essay considers the role of mobile music devices in creating new sonic, emotional and social interactions with and within the city. While academic work in this area has emphasized the use of these devices as a ‘tuning out' of the physicality of the city, we suggest that they might also be used as part of a ‘tuning in' that enhances the meaning and intensity of engagements with the city. In making this case, the essay considers two areas of academic enquiry that highlight the use of mobile music devices in intensified engagements with the city: first, recent writing on the sonic ecologies of the city that emphasize ‘city sounds' as part of the urban experience; and secondly, recent advances in the field of urban computing that provide technologies for location‐aware music exchanges and mediated social interactions. The essay emphasizes mobile music listening as one area of critical enquiry that can help develop our understanding of the ways in which the pervasiveness of mobile devices is recalibrating the experience of urban spatiality.     

‘Who Knows What?’ in New Venture Teams: Transactive Memory Systems as a Micro‐Foundation of Entrepreneurial Orientation

The increasing importance of entrepreneurial behaviour has led scholars to embrace the idea that an entrepreneurial orientation (EO) is an important predictor of firm performance. While EO occupies a central position in strategic entrepreneurship research, scholars have yet to explore its origins in new ventures. Drawing on the knowledge‐based and cognitive views, we theorize that a new venture team's transactive memory system is a cognitive mechanism that spurs the development of an EO. In a field study of high‐tech new ventures in China, we examined the relationship between venture teams’ transactive memory systems (representing the distribution, integration, and utilization of the teams’ knowledge) and EO and the moderating influence of team‐, firm‐, and environment‐level factors. We found that the transactive memory system of a new venture team enhanced their EO and that this relationship was positively influenced by intra‐team trust, the structural organicity of a venture, and environmental dynamism. Our findings provide novel insights into the micro‐foundations of TMS in developing an EO in new ventures.     

Brexit — velvet divorce or messy breakup?

• We use a ‘scenario tree’ approach to look at the possible outcomes of the negotiations around the UK's exit from the EU. Given how little common ground there is between the two sides, we find that a relatively loose relationship is the most likely outcome, with the UK set to leave the EU in early‐ 2019.
• The negotiating positions of the UK and EU are diametrically opposed. The UK wants to end the free movement of labour, cease making contributions to the EU budget and regain ‘sovereignty’ from Brussels, while retaining as much access to the single market as possible. But the EU's starting position is that single market access is dependent upon agreeing to the four freedoms and that this is non‐negotiable.
• So far all signs are that the UK will prioritise the ability to control immigration over single market access. Thus remaining a member of the EEA is very unlikely to be viable over the longer‐term – our scenario tree analysis gives it a probability of just 6% – although it may be adopted as an interim step. Remaining part of the customs union is also unlikely (18%) as it will preclude the UK from making FTA with third countries.
• If the EU takes a mercantilist approach, it will have little incentive to come to an agreement with the UK over single market access for services, given the UK's large trade surplus with the EU for these activities, implying that UK firms may face growing non‐tariff barriers after the UK has left the EU. The UK's large deficit on goods trade with the EU gives a better chance of agreeing a FTA for goods, though with any FTA requiring agreement from all 27 EU members, the UK would have to be prepared for lengthy negotiations and make extensive concessions. Therefore, we think that a reversion to WTO rules (37%) is slightly more likely than agreeing a FTA (36%).

     

The global bond sell‐off – why and where next?

• The rise in global bond yields since mid‐April has taken markets by surprise. Our analysis suggests that, on balance, some upward correction in yields was justified – especially in the Eurozone. For the US, the evidence is more mixed.
• A variety of explanations have been advanced to explain the bond sell‐off including Eurozone reflation/inflation, looming US rate hikes and associated uncertainty, liquidity and other technical factors, Chinese reflation and a simple reversal of yields overshooting to the downside.
• Some of these explanations are more convincing than others: in our view there is some modest evidence for increased uncertainty and liquidity effects but we also think bonds have corrected from overbought levels, especially in the Eurozone.
• Using some econometric models of bond yields suggests that the recent upward correction of German yields was probably justified; markets had pushed yields too low earlier in 2015. Indeed, the model implies a further ‘corrective’ rise in yields is possible.
• For the US, different models give slightly different results – a variant of the well‐known Shiller‐Modigliani model suggests yields should still be below 2%. However, a broader error‐correction model including factors such as fiscal variables and foreign flows into US bonds suggests the recent rise in yields was broadly justified.

     

Sudden Unintended Used‐Price Deceleration? The 2009–2010 Toyota Recalls

Using data from the vehicle resale market, I test consumer responsiveness to large‐scale product recalls that are caused by safety problems. The used‐vehicle prices of Toyotas are compared to the used‐vehicle prices of the other major domestic and foreign manufacturers. The results quantify the losses suffered by Toyota vehicle owners in secondary markets due to the 2009–2010 safety recalls of more than 9 million Toyota Motors vehicles. The treatment effect of a recall is measured using panel data with a difference‐in‐differences estimation approach that allows for time‐varying treatment effects and serial correlation. I find that this recall episode had negative effects in the resale market for automobiles that were quantitatively small (less than 2% of the vehicle’s resale value), statistically indistinguishable from zero, and short lived (did not persist beyond December 2009). A comparison with Audi’s recalls in the 1980s of vehicles with sudden unintended acceleration suggests that the extent to which a company’s reputation is established is more important than whether or not a company has a reputation for producing high‐quality products.