A Comparison of Residents' Perceptions in Two Cruise Ports in the Mediterranean Sea

This paper examines residents' perceptions of a wide set of externalities exerted by the development of cruise tourism. The research involved data collection in two ports located in the two largest Mediterranean islands, Sicily and Sardinia, during the summer peak of the cruise season 2011. These two cruise destinations are especially interesting as they are characterized by a distinct life cycle. The empirical findings show that the two groups of residents have statistically equal perceptions on cruise activity in their destination. A correspondence analysis shows that residents have an overall positive attitude on the development of cruise tourism with respect to social, cultural and economic impacts. Nevertheless, they also feel that cruise activity has a negative impact, especially on the environment. Heterogeneity in occupation is explicitly taken into account. These findings provide directions for local policy‐makers. Copyright © 2012 John Wiley & Sons, Ltd.     

Evaluation of elderly households’ financial standing in Central and Eastern European countries

The purpose of the paper is to analyse and evaluate the financial situation of elderly households in Central and Eastern European (CEE) countries. Current demographic trends simultaneously with reforms of pension systems in the CEE region may lead to an increasing number of elderly households being exposed to poverty risk. In this study, Ward’s method and the method of standardised sums were applied to classify and order the examined countries according to the financial standing of elderly households. The obtained results allow us to identify countries with similar financial situations for elderly households in 2007, 2010 and 2013, and changes in clusters and ranking over the analysed period. The main findings show that the financial situation of the elderly in CEE countries is very differentiated and changeable, however over the analysed period the financial standing of the elderly seems to be most similar in Poland and Slovakia as well as Estonia, Latvia and Lithuania.     

Rail access charges and the competitiveness of high speed trains

This paper examines rail access charges for high speed trains on new high speed lines in Europe and the impact these have on the market position of high speed rail. It examines the latest evidence on the marginal infrastructure and external costs of high speed rail, finding that the best evidence is that these are both not more than 2 €/train-km. However, current legislation states that environmental costs should not be charged for unless they are charged for on competing modes. Mark ups based on Ramsey pricing principles might reasonably raise prices by 100–200%, given that infrastructure charges are only a part of the final price of rail. The paper then examines the actual prices charged in the main European countries operating high speed trains and the impact these are likely to have on traffic levels and mode split. It is found that mark ups often exceed even the optimal Ramsey levels, with a significant impact on rail volumes and market share. It is concluded that, whilst it is not surprising that governments wish to recover some of the construction costs of new high speed rail lines from users, they should consider carefully whether the level of charges is actually significantly reducing traffic on and benefits from these lines.     

Engaging Stakeholders in Emerging Economies: The Case of Multilatinas

Stakeholder engagement is central to organizations’ social impact. Engagement activities rely on mechanisms whose complexity increases for multinational corporations (MNCs). This study explores the boundary conditions of our Western/Northern-based knowledge of stakeholder engagement mechanisms through the examination of such practices in multinational companies founded in Latin America (Multilatinas—MLs). Based on previous studies on the identification of organizational stakeholders in the region, we aim to understand the specific engagement mechanisms MLs use. To this end, we analyze qualitatively 28 corporate sustainability reports by relevant firms. Our findings show that the community includes silent (or non-visible) stakeholders composed of subgroups not listed as organizational stakeholders but mentioned in the report as engaged by the company or a subsidiary. MLs in our sample use four main mechanisms to engage these subgroups: (a) strong, visible commitments to local social organizations; (b) continuous dialogue with members of the community; (c) networks of volunteers to help perform the social activities of the companies; and (d) creation of social infrastructure institutions. We end by detailing the theoretical implications for stakeholder engagement among emerging economies multinational companies (EMNCs) and for MNCs in general.     

Evaluating FOMC forecast ranges: an interval data approach

The Federal Open Market Committee (FOMC) of the U.S. Federal Reserve publishes the range of members’ forecasts for key macroeconomic variables, but not the distribution of forecasts within this range. To evaluate these projections, previous papers compare the midpoint of the range with the realized outcome. This paper proposes an alternative approach to forecast evaluation that takes account of the interval nature of projections. It is shown that using the conventional Mincer–Zarnowitz approach to evaluate FOMC forecasts misses important information contained in the width of the forecast interval. This additional information plays a minor role at short forecast horizons but turns out to be of sometimes crucial importance for longer-horizon forecasts. For 18-month-ahead forecasts, the variation of members’ projections contains information that is more relevant for explaining future inflation than information embodied in the midpoint. Likewise, when longer-range forecasts for real GDP growth and the unemployment rate are considered, the width of the forecast interval comprises information over and above the one given by the midpoint alone.     

Royalty licensing

Most patent licensing agreements observed empirically include either per-unit or ad valorem royalties. The theoretical literature generally focuses on per-unit royalties. We provide a simple justification for the presence of ad valorem royalties in licensing contracts.     

Emergent directions for human resource management research in Latin America

Research in this special issue converges around important HRM challenges that will shape the direction of academic research in the future. We argue that the nature of these challenges, such as balancing global and local HRM approaches, focusing on people while aiming at performance and, in general, managing in a hybrid cultural and economic system, requires reframing strategic HR in terms of social contract theories. Such theories consider multiple stakeholders and focus research on the employment relationship as unit of analysis, which fits well with the pre-eminence of person-centred management over merely profit-centred goals. We propose theoretically anchored research to guide strategic HRM practices, taking into account Latin America's culture-specific humanistic approach and its labour market institutions.     

Hiding an inconvenient truth: Lies and vagueness

When truth conflicts with efficiency, can verbal communication destroy efficiency? Or are lies or vagueness used to hide inconvenient truths? We consider a sequential 2-player public good game in which the leader has private information about the value of the public good. This value can be low, high, or intermediate, the latter case giving rise to a prisoners? dilemma. Without verbal communication, efficiency is achieved, with contributions for high or intermediate values. When verbal communication is added, the leader has an incentive to hide the precise truth when the value is intermediate. We show experimentally that, when communication must be precise, the leader frequently lies, preserving efficiency by exaggerating. When communication can be vague, the leader turns to vague messages when the value is intermediate. Thus, she implicitly reveals all values. Interestingly, efficiency is preserved, since the follower does not seem to realize that vague messages hide inconvenient truths.