Price Strategies for Idiosyncratic Goods—The Case of Housing

We determine the mechanism that a rational, profit-maximizing seller would use to revise his reservation price for a heterogeneous or infrequently exchanged good. For instance, while one dimension of a home's quality may be easily determined in competitive markets (e.g., the valuation of floor size, location, etc.), other dimensions of quality may be idiosyncratic (unit specific) and unobservable by the seller (e.g., aesthetics of the home). Here, a seller of a new or infrequently exchanged housing unit may use sales success information to revise his expectation of the unit's market-determined value and hence revise his reservation price. The rational seller will, upon arrival of the first buyer inspecting the unit, determine a sequence of reservation prices for this and expected subsequent buyers. This price sequence falls for subsequent buyers and starts from a lower initial price if the first buyer arrives later than expected. Through this mechanism, we offer an explanation for price dispersion and vacancy durations in housing markets. While we explicitly model the real estate market here, this price revision mechanism is also applicable to rental markets, labor markets, used car markets, and other markets characterized by heterogeneity and infrequent sales.     

Job creation initiatives in the UK: the large company role

In recent years many large companies – mainly those making large scale redundancies – have made efforts to stimulate job creation in the localities in which they are based. Although this has succeeded in helping to create jobs, it has been criticised, prompting major sponsors of such initiatives to consider how job creation strategies can be made more effective.     

Reputation and corporate strategy: A review of recent theory and applications

A corporate reputation is a set of attributes ascribed to a firm, inferred from the firm's past actions. While the intuition behind reputation-building is hardly new, recent research has formalized the concept. We review this research and then, using examples, illustrate some of the strategic behavioral implications of these formal models.     

DEVELOPMENT IN THE UNITED KINGDOM

The United Kingdom abolished domestic property taxation, the major autonomous revenue source for local authorities, in 1989 (Scotland) and 1990 (England and Wales). The introduction of a flat rate personal charge (called by the Government 'the community charge' and by its opponents 'the poll tax') aroused huge political controversy. The choice of a substitute tax, to operate from 1993, and based at least partly on property, was one of the major domestic issues in the recent General Parliamentary Election. This paper examines the background to the abolition of domestic property taxation and why it was such a key political issue, explains why the "community charge" failed and describes the immediate prospects.     

Imperial dictate: The effect of the two World Wars on the Indian coal industry

Little is known about the economic effects of the two World Wars on the Indian economy. No overall macro-picture can be drawn until a whole series of micro-studies at the industry level have been conducted. This paper sets out to provide one such case-study, that of coal mining.The impact of the wars on the historical evolution of the industry is considered by examining the specific wartime market conditions; the control measures erected by the Government; the methods of labour recruitment that were adopted; and the changes in living and working conditions that occured.     

The law and job design: comments on recent Norwegian legislation

A primary concern of those interested in the quality of working life has been with the design of jobs. In this article the authors review the reasons why job design reform has not generally attracted the interest of lawmakers. One notable exception is Norway, and this article reports the findings of a survey into the effects of the most recent law—the Work Environment Act of 1977.