Is the economics of time and ignorance a “classic”?

A history of economic thought perspective on The Economics of Time and Ignorance reveals that the book rehabilitates some major themes in the Austrian tradition that were all but lost subsequent to the formalist revolution in economics that took place in the middle of the twentieth-century. The book also anticipates some important ideas that were extended and applied in Austrian economics after it was first published. Reviews have claimed that the book was a “classic” and also “original”. The book is too close in a temporal sense to judge whether or not future generations will canonize it as a “classic”. Using Stigler’s criteria as to what constitutes scientific “originality”, it is concluded that, taken as a whole, the book was not original. From the vantage point of the overall discipline of economics, it was a work advancing controversial ideas that would not easily change the beliefs, practices and interests of economists in general but it offered sound reasons for taking the Austrian thought-trajectory more seriously. It would be more fitting to view the authors as providers of many innovations contributing to the mature Austrian economics of the twenty-first century.     

Interactive planning for strategy development in academic-based cooperative research enterprises

The evolution of strategic management concludes that formulation and implementation is an emergent process. In today's knowledge-based society this requires that managers develop more creative ways to align strategies with core competencies to maximise organisational performance and efficiencies. This paper evaluates the approach taken by a university-based research collaborative to illustrate an integrated planning process that supports strategic management in higher education environments. Utilising the concepts of road mapping and interactive planning, this case study provides insights into the participative approach used and provides a modification of several conceptual models to illustrate the advantages and disadvantages of this process.     

An Integrative Model of the New Product Development Process

Previous studies of new product development have identified a series of variables that are important determinants of new product success. The goal of this article is to demonstrate the nature of the complex interrelationships that exist among these variables. Roger Calantone and Anthony di Benedetto propose an integrative model of the new product decision process. They examine data gathered from a sample of industrial manufacturing companies and test their model empirically using three-stage least squares analysis. The article concludes with a discussion of implications for new product managers.     

Government Underpricing of Share‐Issue Privatizations

Abstract *** :  The purposes of the paper are to determine whether governments underprice shares in fixed‐price share‐issue privatizations (SIPs) and, if so, what their motivations are for doing so. This paper develops three models of SIP underpricing: one based on revenue goals, one based on political goals and an inclusive model which supposes that the level of underpricing depends on both government revenue goals and political goals. These models are estimated using an international sample of 104 SIPs from 25 countries. We find that, on average, SIPs are underpriced by approximately the same amount as private sector initial public offerings (IPOs). This is not consistent with the sole goal of revenue maximization because SIPs should not require the same degree of underpricing as IPOs. The inclusive regression fits the data well and indicates that both revenue and political goals affect the level of SIP underpricing .     

Infrastructure, Geographical Disadvantage, Transport Costs, and Trade

The authors use different data sets to investigate the dependenceof transport costs on geography and infrastructure. Infrastructureis an important determinant of transport costs, especially forlandlocked countries. Analysis of bilateral trade data confirmsthe importance of infrastructure and gives an estimate of theelasticity of trade flows with respect to the trade cost factorof around –3. A deterioration of infrastructure from themedian to the 75th percentile raises transport costs by 12 percentagepoints and reduces trade volumes by 28 percent. Analysis ofAfrican trade flows indicates that their relatively low levelis largely due to poor infrastructure.     

What happens when things go wrong? Retail sales explanations and their effects

Not all marketplace interactions are initially successful, and often customer expectations are not met, resulting in dissatisfaction, which leads to complaint and redress‐seeking behavior. In this process, the nature of the explanations and other aspects of the firm–customer interaction are critical. This study investigates the proposition that explanation adequacy plays a critical role in the resolution of unsatisfactory sales encounters. Data were collected from a sample of consumers and analyzed with the use of structural‐equation modeling. The findings indicate that explanation adequacy is influenced by the style and content of the explanation and the timeliness of an organization's reaction. However, explanation adequacy appears to only influence the final perceptions (indirectly) of the severity of the incident and emotional reaction to it, and the perceptions of the extent of the justice of the resolution and the assignment of blame to external factors were found to be intervening variables. The results also indicated that the assignment of blame to internal factors was unrelated to the adequacy of an explanation, but did influence emotional reactions and the perceived severity of the incident. © 2004 Wiley Periodicals, Inc.