Bounded Rationality Modeling

This paper deals with bounded rationality as a way to describe behavior and focuses on the question of how to build such boundedly rational models. The first part is a discussion of the reasons why such models are needed and on the situations in which they can be regarded as more particularly useful. The second part examines three strategies of research towards bounded rationality modeling which have emerged in the last ten years and weights them. The concluding remarks offer a first link between the respective typologies of strategies and of situations and calls for additional experimental work by marketing scientists and economists together.     

Complementarity and Substituability in Multiple-Risk Insurance Markets

We study imperfect competition between insurers in a multiple-risk environment. In the absence of asymmetric information, equilibria are efficient, and we determine the degrees of specialization under which the specialized insurers are able or unable to capture the surplus. We show in contrast that under adverse selection, specialization systematically prevents second-best efficiency. Concluding on the role of our notions of strategic complementarity/substituability on the tradeoff between efficiency and fairness of the allocation, we give indications on the desirable structure of the insurance industry.     

An investigation of due-date assignment rules with constrained tightness

We describe an experimental study of a single-machine scheduling model for a system that assigns due-dates to arriving jobs. The average lightness of the due-dates is assumed to be governed by a policy constraint, which we link analytically to the parameters of the decision rules for due-date assignment. We examine the use of different kinds of information in setting due-dates, and we investigate the relationship between the due-date assignment rule and the priority dispatching rule. On the basis of our results we identify situations in which the dispatching rule is critical to effective scheduling, others in which the due-date assignment rule is critical, and still others in which the combination of the two rules is a critical design issue.     

Survey on attitudes to nutrition planning

The results of a worldwide survey of nutrition planning professionals' attitudes towards nutrition policy are presented. The objective of the survey was to determine what those involved in nutrition planning perceive to be the causes of hunger and malnutrition, and their views on the effectiveness of the programs implemented to overcome these problems. In mid-1979, a questionnaire was compiled comprising 48 questions related to attitudes towards nutrition policy, voluntary questions about social class, political classification and professional behavior and a question on perceived major impediments to solving malnutrition in the world. The questionnaire was sent to 728 professionals 87 countries; 250 replies from 55 countries; 250 replies from 55 countries were received. 44% of respondents resided in the US, 16% in Latin America and the Caribbean, 14% in the Far East, 12% in Africa and the Middle East and 13% in Europe, Canada and Australasia. Self-classification of political beliefs is the most clear cut correlate in predicting attitudes towards food and nutrition policy. There appear to be 2 clear schools of scientific/political behavior in the sample: one holds a more moderate, but generally liberal, set of views regarding the failure of modern technology in resolving world hunger and nutrition problems; a 2nd more liberal group believes political causes to be at the root of hunger. There is no single profession that can be typified as a breeding ground for nutrition planners. While the European trained and/or native group tends to be more to the left in their attitudes than their counterparts in the US, both groups are decidedly liberal and believe that social structural changes are needed to solve the problems of hunger and malnutrition in the world.     

The use of workload information to control job lateness in controlled and uncontrolled release production systems

The performance of a workload dependent scheduling and due date assignment rule is investigated. The rule uses time-phased workload information and time-phased capacity information. Performance comparisons are made with a rule that uses only time-aggregated workload information. The performance for two methods of releasing jobs to the shop is investigated: an uncontrolled method where the jobs are released at random, and a controlled method where jobs are released to maintain a specific workload norm. Computer simulation is used as the research tool. The mean and standard deviation of lateness are used as performance measures.The results indicate that the use of time-phased workload information may decrease the variance of the lateness, as compared with the use of time-aggregated workload information only. However, the magnitude of the effect depends on the type of sequencing rule used. Furthermore, if time-phased information is used, control of the mean lateness requires that the amount of capacity available for loading used in the loading procedure differs from the amount of capacity actually available for production. It is shown that by selecting adequate parameter values, both a constant mean lateness and a small variance of lateness can be obtained with this type of assignment rule.These results are valid for both types of release situations. So even in the case where the workload of the shop is under strict control, and the mean operation flow time does not, therefore, vary, the use of time-phased workload information can decrease the variance of the lateness.     

On Efficient Child Making

This paper is devoted to the study of the Pareto-efficiency of the competitive equilibrium for an overlapping generations economy with endogenous fertility. Pareto-efficiency needs a reformulation when fertility is endogenous. Then it is proved that a competitive equilibrium that converges in over-accumulation is non-Pareto-efficient. However, we provide an example in which a competitive equilibrium that converges in under-accumulation is non-Pareto-efficient. Finally, we give a general condition that ensures the Pareto-efficiency of the competitive equilibrium. This paper was presented at the conference “Irregular Growth”: Beyond Balanced Growth” , Paris, June 2003. The current version of this paper was completed after Philippe Michel’s sudden death. Bertrand Wigniolle wants to express his deep sorrow for the loss of a close friend and an excellent economist, from whom he learned a lot over the years. The authors would like to thank Tapan Mitra for helpful comments. They also are grateful to Claire Loupias, who began to think with them on the subject and to an anonymous referee for useful suggestions and improvements.     

The Hungarian Insurance Market: Economic Transition in the Insurance Sector

This article analyzes Hungary's insurance sector as an important part of the country's economic transition from a centrally planned economy to a market economy. It details the historic economic development of the Hungarian insurance market from a state monopoly to a competitive insurance market where foreign-owned insurance companies have a dominant market share.     

The information content of earnings and turnover announcements in France

Annual net income is seen by shareholders as the most important figure, since it is, for individual accounts, the basis of appropriation of profit by the shareholders' general meeting. However, firms publish interim figures at a higher frequency to allow investors to react quickly to frequently updated information that gives them a more accurate view of the evolution of the firm. In the United States, according to regulation S-X, the interim quarterly reports must disclose the net income. In France, firms must publish their quarterly turnovers and their half-year income statements in addition to their annual accounts. Whereas American publications are practically homogeneous in nature in terms of earnings disclosure, the information content of French quarterly reports differs from that of the half-year and annual accounts. Such French irregularities in information content mean that interim and annual announcements do not have the same value for the shareholders. Because of the heterogeneous nature and the time frame of the disclosed information, one may wonder if French market reactions to the announcements of interim publications exhibit significantly different characteristics from those observed for quarterly releases in other countries. This can only be appreciated through a differential analysis of French market response to interim and annual announcements.     

The cost of childhood injury in France

Injuries are a major public health problem worldwide. In the USA, injuries cause 146, 400 deaths annually, with 31 million non-fatal injury visits to emergency departments (EDs). EDs thus represent an important source of injury data. The primary objective of the current study was to describe the epidemiology of injury-related ED visits and assess injury-related utilization of health care resources in an inner-city hospital in Indiana, using data stored in a computerized medical record system. It involved a retrospective review of the records for injury visits to EDs and injury admissions over a 3-year period. The variables extracted and analysed included patients' demographics, external cause of injury, diagnosis, length of stay, ED and hospital charges. A total of 60,470 injury-related ED visits were made, the majority of patients were male (61.6%), uninsured (63.1%), treated in ED and discharged (98.4%). The leading causes of injury were falls (18.8%), motor vehicle crashes (18.4%), assaults (17.6%), being struck (11.2%) and overexertion (10.6). Firearms caused most injury deaths (32.4%; n = 314); motor vehicle crashes were the leading cause of hospitalization (26.6%; n = 642) and also the most expensive to treat as inpatients (mean charge $19,190). The mean charge per patient treated and discharged was $150 compared to $11,116 for patients admitted. These findings demonstrate the value of computerized medical records in capturing and storing E-coded injury data. The system generates data that can be used for epidemiological surveillance and injury prevention at the local level, and for assessment of impact of specific injuries on health care resources.