A trucker's dilemma: Managerial behavior under an operating-ratio standard

A model of an individually regulated trucking firm is extended to reflect collective regulation by the operating-ratio method as conducted for many years by the ICC. The game-theoretic extension predicts that managers will not respond to a required operating ratio, in cartel-like manner, by increasing expenses in pursuit of higher profit. This result undermines the Commission's stated belief that an operating-ratio standard, even when applied collectively, imparted such an incentive. An empirical test supports the conclusion that tighter regulation, measured by higher achieved operating ratios, did not invite increased employment of the variable factors. On the contrary, tighter regulation is found inversely related to the employment of all factors and, implicitly, to industry output. Deregulation of entry and rates was thus a more likely source of improved managerial efficiency than merely switching from an operating ratio to a return-on-equity standard, as tbe Commission did in 1978.     

Retroactive terms adjustment

The concept of Retroactive Terms Adjustment (RTA) emerged as a response to the urgent need for international action on the debt problems of the developing countries. The following article analyses the concept and the contribution RTA has made towards solving the debt problem.     

Decision-making patterns among international vacationers: A cross-cultural perspective

While there is a tendency to define world subcultures in terms of geographic or sociocultural criteria, the present research suggests that life styles may have become more homogeneous across geographic boundaries and could provide alternative ways of defining world subcultures. The study addresses the research question using international travel behavior. The results suggest that life style segmentation could be used to supplement geocultural criteria for defining world subcultures and formulating marketing strategy.     

Economics in the pre-college curricluum

This study analyzes the effects of integrating economics into the social studies curriculum and the effects of participation in the Stock Market Game (SMG) on the Maryland School Performance Assessment Program (MSPAP) economics outcome scores. The study was carried out using state summary and disaggregated data and summary data for each school system in Maryland. The 1992 and 1994 MSPAP economics outcome scores for grades 3, 5, and 8 constituted the dependent variable with the level of integration of economics in the curriculum and the level of participation in the SMG being the main explanatory variables. Using comparative static analysis, two related but separate questions were addressed. The first question asks how school systems with different levels of integration of economics in the curriculum and with different levels of participation in the SMG compare to the state average. The second question asks how these groupings compare to each other. It is this second question that lends itself to more rigorous hypothesis testing.Funding for this project was provided in part by the Securities Industry Foundation for Economic Education, the Council on Economic Education in Maryland, and the Towson State University Faculty Development and Research Committee.     

Knowledge relatedness and the performance of multibusiness firms

This study examines corporate performance effects of cross‐business knowledge synergies in multibusiness firms. It synthesizes the resource‐based view of diversification and the economic theory of complementarities to conceptualize cross‐business knowledge synergies in terms of the relatedness and the complementarity of knowledge resources across business units of the multibusiness firm. The study hypothesizes that corporate performance is improved when the firm simultaneously exploits a complementary set of related knowledge resources across its business units. In a sample of 303 multibusiness firms, the study finds that synergies arising from product knowledge relatedness, customer knowledge relatedness, or managerial knowledge relatedness do not improve corporate performance on their own. Synergies arising from the complementarity of the three types of knowledge relatedness significantly improve both market‐based and accounting‐based performance of the multibusiness corporation. Copyright © 2004 John Wiley & Sons, Ltd.