Consistent choice under uncertainty

Suppose ex post preferences are defined upon prizes and ex ante preferences are defined upon lotteries. Then the consistent choice of decision rules reigns whenever ex post optimality is equivalent to ex ante optimality. This essay provides a necessary and sufficient condition for consistent choice in terms of revealed preferences. Indeed, ex ante revealed preferences must be induced from ex post revealed preferences in a manner which requires them to satisfy the independence axiom from expected utility theory.     

Contingent payments in selection contests

The early literature on research contests stressed the advantages of a fixed prize in inspiring R&D effort. More recently the focus has moved towards endogenizing the rewards to research activity in these tournament settings, since this can induce extra effort or enhance the surplus of the buyer. We focus on a research contest as a means of selecting a partner for an R&D enterprise, in an informational setting in which the established providers of R&D services know more about each others’ relative capabilities than does the buyer/sponsor. An alternative use of our model is in choosing between prospective patentees where the Patent Trading Office has less information on the patents than the competitors. This asymmetry creates a source of inefficiency if a rank order contest is used as a selection device; we show how the contest can be modified to improve selection efficiency, while maintaining its simplicity (as only ordinal information is required). The modification that we suggest involves endogenizing the prizes that are awarded contingent upon whether a contestant wins or loses the contest. Furthermore, the payment system and the selection mechanism are detail-free. This paper is part of the project “The Knowledge-Based Society” sponsored by the Research Council of Norway (project 172603/V10).     

Political Connections and Leverage: Firm‐level Evidence from Pakistan

This study investigates the impact of political connections on corporate financing decisions using a sample of listed Pakistani firms over the period 2002–2010. We find a positive and significant link between long‐term debt and political connections, which reflects greater access to credit. Such preferential treatment escalates with the strength of the connected politician. Furthermore, positive effects of political connections are seen to be stronger for large firms and those affiliated with business groups. Copyright © 2014 John Wiley & Sons, Ltd.     

The process of internationalization in the operating firm

Two factors have been emphasised as influencing the choice of, and subsequent shifts between, modes of foreign market servicing: (1) market-specific knowledge; and (2) the generalised knowledge from operating internationally. The process-oriented literature on internalisation has tended to emphasise the former over the latter. This article maintains that market-specific knowledge is not the only source of information available to a firm. As firms operate in foreign markets they develop, in addition to networks of institutional arrangements, a knowledge of the process of internationalization. Account therefore has to be taken of the general knowledge from operating internationally in understanding the development of institutional arrangements in foreign markets. Consequently, the appropriate unit of analysis is not the individual market but the operating firm as a whole. This argument is illustrated with reference to an empirical study of the internationalization of 25 UK-based organizations.     

Understanding Active Loyalty Behavior in Hotel Reward Programs Through Customers’ Switching Costs and Perceived Program Value

Whether loyalty programs have become part of the lexicon of buzzwords or not, the hotel industry continues to adopt loyalty/rewards programs as a major channel to nurture customers’ active loyalty as well as to reap return business. This study examins the structural relationships among perceived program value, switching costs, and active loyalty. The proposed model is supported by an online survey dataset collected from United States (US) tourists. The findings show that perceived program value is less effective in driving active loyalty compared with switching costs. This implies a need for strategic thinking on the part of hoteliers and the industry. Rather than aggressively spending money or copying schemes used by competitors to gear up program value, the value of a defensive tactic of increasing switching costs should be considered.     

The growing dependence of Britain on trade during the Industrial Revolution

Many previous studies of the role of trade during the British Industrial Revolution have found little or no role for trade in explaining British living standards or growth rates. We construct a three-region model of the world in which Britain trades with North America and the Rest of the World, and calibrate the model to data from the 1760s and 1850s. We find that while trade had only a small impact on British welfare in the 1760s, it had a very large impact in the 1850s. This contrast is robust to a large range of parameter perturbations. Biased technological change and population growth were key in explaining Britain's growing dependence on trade during the Industrial Revolution.     

Theoretical motives of corporate cash holdings and political connections: firms level evidence from a developing economy

In this paper, we revisit the theoretical motives of corporate cash holdings while concentrating on the effect of political connections. In particular, we postulate two competing hypotheses for the effects that political connections can have on cash holdings: ‘substitution effect hypothesis’ and ‘complementary effect hypothesis’. Using the data on Pakistani firms over the period 2002–2010, we find that connected firms hold significantly larger cash reserves than their non-connected counterparts, thus confirming the ‘complementary hypothesis’, which suggests that agency problems lead connected firms to accumulate large amount of cash. Further, this effect is found to be more pronounced in dictatorial as opposed to democratic regimes indicating the presence of higher degrees of political patronage in that period. Finally, we also find differences in the complementary effect based on firm characteristics. Our results suggest that the firm size and leverage have increasing effects on the cash holdings of connected firms, contrary to the mainstream literature standpoint.     

From pushchairs to wheelchairs: understanding tensions in family decision making through the experiences of adult children caring for ageing parents

Abstract

Within a modern family life, roles have changed significantly; however, relatively little attention has been given to the increased health and longevity of parents. This article focuses on the tensions relating to the transitional role of parent as ‘carer of the child’ to child as ‘carer of the parent’ as parents age. This article focuses on the experiences of adult children as they care for their parents and the related tensions that emerge and coping strategies that are adopted. Adopting an interpretive approach we shed light on the decision-making practices around shopping, residential arrangements and other consumer choices and how they take place in complex arenas of intricate family interactions, influence and power. Key themes that emerged were strategies adopted by both the adult child and ageing parent to attain or retain control in an increasingly sensitive environment where there is no roadmap to guide either party.     

A review of Technology Education in Ireland; a changing technological environment promoting design activity

In Ireland, Technology Education’s structure and organisation across the levels of education is not delivered or governed in a coherent manner. Technology Education in primary level education, for students between 5 and 12 years of age, does not explicitly exist as a separate subject. In primary level education, Social, Environmental and Scientific Education (Science), encourages a child to examine and appreciate how technology and science impacts on their lives and the environment. It supports children developing design and make skills, and to apply scientific ideas to everyday situations and practical problems (DES in Primary school curriculum, science. Social, environmental and scientific education curriculum, 1999). In addition, various initiatives such as the Junior Lego League, supported by the Galway Education Centre, facilitate various perspectives of Technology Education. In second level education, which this paper primarily focuses on, Technology Education exists as a suite of eight subjects, for students of 12–18 years of age. In third level education students can choose from a wide range of bachelor degree programmes in science, technology, engineering or maths. The degree programmes available at third level also include programmes in initial teacher education (ITE). These programmes in initial teacher education are offered by two institutions, and graduate second level teachers to service the second level system. Technology Education in second level education was first introduced to Ireland in 1885. Since this introduction, revisions and changes have occurred, in both the Irish economy and syllabi. In 2006, Technology Education syllabi were revised to include more design activity at senior cycle. These changes reflect the forward thinking of policy makers in reflection of the progression from the industrial era to the information era to the conceptual era. The scope of second level Technology Education in an Irish context is still perceived by many as vocational, though progressive reformations are advancing towards a design-driven framework, grounded in a strong craft practice. This changing technological environment has resulted in the promotion of design activity in second level Technology Education in Ireland. This paper reviews the establishment of design education in Technology Education in the Irish second level education context, where an epistemological shift towards design activity has occurred.