Heckscher–Ohlin theory when countries have different technologies

Rethinking the foundations of Heckscher–Ohlin theory when countries have different technologies, this paper shows how to make the proper adjustments for international productivity differences. The central tool is a factor conversion matrix that computes the local factor content of foreign Rybczynski effects. Factor-specific productivities are a special case of these more general linear relationships.     

The emergence of green talent

Several factors are driving an increase in the supply of and demand for "green talent", employees with the mindsets and skills to drive sustainability. But many business leaders do not fully understand the implications of this change in the workforce. John Glen, Chris Hilson and Eric Lowitt believe corporate chiefs need to learn – quickly.     

Non-cooperative exploitation of multi-cohort fisheries—The role of gear selectivity in the North-East Arctic cod fishery

North-East Arctic cod is shared by Russia and Norway. Taking its multi-cohort structure into account, how would optimal management look like? How would non-cooperative exploitation limit the obtainable profits? To which extent could the strategic situation explain today’s over-harvesting? Simulation of a detailed bio-economic model reveals that the mesh size should be significantly increased, resulting not only in a doubling of economic gains, but also in a biologically healthier age-structure of the stock. The Nash equilibrium is close to the current regime. Even when effort is fixed to its optimal level, the non-cooperative choice of gear selectivity leads to a large dissipation of rents.     

Foreign vs. domestic listing: An entrepreneurial decision

In this paper, we use a unique hand-collected dataset to analyze stock listing as an entrepreneurial decision. By comparing mainland Chinese entrepreneurial firms listed in Hong Kong with the same type of firms opting for a domestic listing on the Shenzhen second board market, we argue that the decision to list on a particular stock exchange is a question of entrepreneurial signaling, and often a trade-off between short-term financial considerations and the entrepreneur's pursuit of long-term benefits.     

Buyer-Option Contracts Restored: Renegotiation, Inefficient Threats, and the Hold-Up Problem

"Buyer-option" contracts, in which the buyer selects the productvariant to be traded and chooses whether to accept delivery,are often used to solve holdup problems. We present a simplegame that focuses sharply on subgames in which the buyer proposesinefficient actions in order to improve his bargaining position.We argue for one of several alternative ways to model this situation.We then apply that modeling choice to recent models of the foundationsof incomplete contracts and show that a buyer-option contractis sufficient to induce first-best outcomes.     

Prosecutorial Discretion at the EPA: Some Evidence on Litigation Strategy

This paper examines the determinants of the EPAs litigation strategy between 1977 and 1996 focusing on the tenure of Ann Gorsuch. Two hypotheses about this period are tested: (1) that changes in the EPAs litigation strategy were in fact an effort to reduce the expected penalty for violating environmental laws or (2) that the changes made in litigation strategy were consistent with efforts to reduce transaction cost. Contrary to previous research, I find no conclusive evidence of an overall shift toward business interests in EPA prosecutions. There is, however, clear evidence of shifts in the EPAs litigation strategy across administrations.     

Sales channel integration after mergers and acquisitions: A methodological approach for avoiding common pitfalls

This article addresses the integration of sales channels after mergers and acquisitions (M&A) by appraising the strengths, weaknesses, and biases associated with the four most common frameworks for evaluating sales channels (sales management, historical performance, strategic fit, and customer choice) for their appropriateness in a post-M&A context. The authors develop a methodological approach that uses a balanced-scorecard framework to guide managers through the sales channel integration process, and then apply this approach to the merger of two industrial firms' sales organizations across 21 territories. In so doing, they reveal various pitfalls and propose and test some analytical corrections. Longitudinal performance data support comparisons across the different evaluative frameworks; in particular, the sales management and customer choice frameworks provide the most insight into channel partners' post-integration performance. The results support the premise that channel integration can be improved by accounting for factors unique to the M&A context and using an approach that triangulates multiple perspectives.