LICENCE VALUES IN TAXI MARKETS

Wherever taxi regulators cap the number of taxis, operating licences acquire economic value. In the UK, the Office of Fair Trading recommended legislative repeal of quantity caps, but the status quo continues. This article argues that licence values send an important signal to taxi regulators.     

Antecedents, consequences, and mediating effects of perceived moral intensity and personal moral philosophies

This study uses responses from a survey of marketing professionals in a structural equation model linking antecedents and consequences of two dimensions of personal moral philosophies (idealism and relativism) and perceived moral intensity (PMI). Mixed support is found for hypothesized effects of gender, religiosity, education, experience, salary, and corporate ethical values on idealism and relativism. Idealism increases and relativism decreases PMI in four ethical scenarios. PMI increases perceptions of ethical problems, which reduce intentions to act unethically. The study tests whether relationships between variables, revealing that PMI has direct as well as indirect effects on intentions. Intentions are also influenced by gender: women have more ethical intentions than men, on average, and this effect is not mediated by other variables in the model. Anusorn Singhapakdi is an associate professor of marketing at Old Dominion University. He has also served on the marketing faculty at Lamar University, Texas, and at Thammasat University, Thailand. His papers on topics in marketing ethics and social responsibility have been published in theJournal of the Academy of Marketing Science, Journal of Business Ethics, Journal of Business Research, Journal of Macromarketing, Journal of Public Policy & Marketing, and various other journals and proceedings. Scott J. Vitell is the Phil B. Hardin Professor of Marketing at the University of Mississippi. He received his Ph.D. in marketing from Texas Tech University. His work has previously appeared in theJournal of the Academy of Marketing Science, Journal of Business Research, Journal of Macromarketing, Journal of Business Ethics, Research in Marketing, International Marketing Review, and in other journals and proceedings. George R. Franke is an associate professor and Reese Phifer Fellow of Marketing at the University of Alabama. His research interests include ethics, public policy, advertising, and research methodology. His publications have received best-paper awards from theJournal of Advertising, Journal of Marketing Research, American Marketing Association, and Southern Marketing Association.     

FEMALE ENTREPRENEURSHIP IN EARLY ISLAM

The absence of female leaders in business and public life is conspicuous in Islamic societies. One explanation may be that Islam imposes legal and social inequality on men and women. However, a comparison of female entrepreneurship in pre‐Islamic society and in Mohammed's era shows that women occupied leadership roles before and after the establishment of Islam. Mohammed's wives were commercially astute, and Mohammed and his contemporaries respected the rights of women to make decisions regarding finances, matrimony and religious affiliation. The right of women to assume public leadership roles is compatible with Islam.     

Commodity prices and growth: An empirical investigation

Whereas empirical evidence on the effect of higher commodity prices on the long-run growth of commodity exporters is ambiguous, time series analyses using vector autoregressive (VAR) models have found that commodity booms raise income in the short run. In this paper we adopt panel error correction methodology to analyze global data for 1963 to 2008 to disentangle the short and long run effects of international commodity prices on output per capita. Our results show that commodity booms have unconditional positive short-term effects on output, but non-agricultural booms in countries with poor governance have adverse long-term effects which dominate the short-run gains. Our findings have important implications for non-agricultural commodity exporters with poor governance, especially in light of the recent wave of resource discoveries in low-income countries.     

Effort maximization in asymmetric contest games with heterogeneous contestants

Contest rules are set up by administrators who frequently have discretionary power in specifying the details of these rules, i.e., they can bias the contest rules toward specific contestants in order to further their prime objective. We derive the optimal bias of the contest rule for a contest administrator, who is interested in maximizing the total efforts expended in the contest. The solution is obtained in closed form for a widely used class of n-person contest games. Setting the optimal bias has important implications: (i) there is never exclusion of strong players, instead there is (endogenously induced) inclusion of weak contestants; (ii) the contest administrator will optimally level the playing field by encouraging weak contestants, but he will not equalize the contestants’ chances unless they are identical; and (iii) at least three contestants will be active in equilibrium of the optimal contest, irrespective of heterogeneity.     

Hostages, free lunches and institutional gaps: the case of the European Currency Union

This paper argues that the strong member states of the European Currency Union are hostages of a financially distressed member state so that they are compelled to provide financial support. Moreover, due to the dynamics of the interaction game, a debt relief is a free lunch for the distressed country. This fosters moral hazard of distressed countries. In the absence of capital market control, European politics do not effectively monitor fiscal politics of member states. The lack of a long-term strategy of the European Currency Union to deal with distressed states has undermined the credibility of politics. This lack is also explained by a lack of a European Insolvency Charter. A viable Union requires such a charter with rules for handling distress. Moreover, politics should determine a mechanism to coordinate politics and capital markets in their monitoring of fiscal and economic policy of member states.     

Applying the method of simulated moments to estimate a small agent-based asset pricing model

The paper takes a recent agent-based asset pricing model by Manzan and Westerhoff from the literature and applies the method of simulated moments to estimate its six parameters. In selecting the moments, the focus is on the fat tails and autocorrelation patterns of the daily returns of several stock market indices and foreign exchange rates. It is argued that it may be meaningful to abandon the econometrically optimal weighting matrix in the objective function and instead invoke the moments' t-statistics in an intuitively appealing way. This modification gives rise to estimations whose moment matching, given the model's parsimony, can be largely considered to be satisfactory. Also the parameter estimates across different markets make good economic sense.     

Doorsteps Toward Political and Economic Openness: Testing the North-Wallis-Weingast Transition Framework

In this paper, we test the theoretical framework developed by North, Wallis, and Weingast (2009), who posit that limited-access societies need to meet three doorstep conditions before they can transit into open-access societies: (1) establishment of rule of law among elites, (2) adoption of perpetually existing organizations, and (3) political control of the military. We identify indicators reflecting these doorsteps and econometrically test their relationships with specific political and economic variables. We broadly confirm the logic behind the doorsteps as necessary conditions in the transition to open-access societies. The doorsteps influence economic and political processes, as well as each other, with varying intensities.