Testing Choice Experiment for Benefit Transfer with Preference Heterogeneity

Benefit transfer is a cost-effective method for estimating the value of environmental goods that relies on information obtained in previous studies. The multiattribute approach of choice experiments should provide advantages in terms of benefit transfer, allowing differences in environmental improvements between sites as well as differences in socioeconomic and attitude characteristics between respondent populations. This article investigates the capability of choice experiment method to be used in environmental benefit transfer when a random parameters approach is used to allow for preference heterogeneity: we find that the inclusion of respondents' taste heterogeneity reduces the magnitude of the transfer error.     

Management Speaks,Investors Listen: Are Investors Too Focused on Managerial Disclosures?

Market regulators are concerned about the completeness of management-provided explanations in financial reports and other venues. In particular, the Securities and Exchange Commission has articulated the growing problem of firm managers selectively emphasizing information that is favorable to their firm's financial status. In this two-experiment study, we examine whether investors are adversely influenced when firm managers provide only a partial explanation for a firm's financial outcomes, even though the investors have information about all of the causes for a firm's financial outcomes. Our results reveal that investors are misled by partial management explanations. We demonstrate that this effect occurs in situation both when qualitative information is known about the causes and when quantitative information is known about the causes. We document that one way in which this overreliance on management-provided partial information can be mitigated is when investors are provided with a quantitative analysis of the management explanation; with this quantitative analysis we observe that investors are able to distinguish between partial and complete explanations. Our study has implications for regulators and researchers.     

Synergies in destination image management: a case study and conceptualisation

This paper addresses the question of how operators and destination authorities work within a destination region, illustrating a method by which the problems resulting from different geographical scales and objectives of business units can be tackled through co‐operative marketing within a strong destination image. Following a review of the literature, a case study covering the research underpinning a cooperative marketing programme involving hotels in Port Douglas, Tropical North Queensland (TNQ) is presented. The research methodology is outlined. The policy implications of the findings for the State Tourist Organisation and for organisations involved in destination image management are considered, and a conceptual model of cooperative marketing at the destination level is proposed. Copyright © 2002 John Wiley & Sons, Ltd.     

BEYOND THE TRIAGING OF NEGLECTED THINGS: Connecting Place and Participation Across an Urban System

What is the relationship between top-down governance reform and place-based participatory and deliberative spaces? In this article I argue that in Toronto, an urban system of public participation and deliberation is intimately interwoven into partisan scalar restructuring processes, as well as enduring tensions over the ways and means by which the public can have authoritative input on solving local issues. Regardless of top-down political manoeuvring, the public mobilizes in various spaces across the city, but the urban system remains disconnected and geared towards triaging. This means that the public must work autonomously across the city and within the crevices of city processes, prioritizing how to make gains on issues that they feel are important. I discuss how to move beyond this by building on deliberative systems theory and findings from interviews with local city staff and residents, and through an analysis of public deputations at the official Special Committee on Governance. Ultimately, there is a need for spatially integrated opportunities for more people to come together and assemble in different ways. Some of these will align with autonomous activities, some are liminal and woven within institutional partners, and others are more about geographical bridge building.     

Commitment and discretion in contracts: theory and evidence from retirement plans*

We consider a firm's problem of incentivizing its workforce through relational contracts, when workers effectively face a shorter time horizon due to possible separation shocks. Commitment issues then generate a trade-off between efficiency and distribution, which affects both performance and profits. Profits under relational contracting can exceed those under formal contracting, despite lower performance, when discounting is moderate, firm bargaining power is weak, and shocks are likely. Using a matched employer–retirement plan dataset, and interpreting discretionary profit-sharing plans and employee stock ownership plans as relational and formal contracting, respectively, we find some support for our predictions.