Renegotiation in Public–Private Partnerships: An Incentive Mechanism Approach

Game theory is an important analytical tool for measuring problems caused by behaviors that deviate from contractual ethics. However, the PPP literature still does little to explore this research topic. This paper analyzes and improves the equilibrium conditions of a renegotiation model of PPPs by introducing the asymmetry of information in the contract. To achieve this goal, the Mechanism Design Theory is used to demonstrate how the correct tracking of the investor directly influences the payoffs of the renegotiation. The study concludes that the lack of incentive constraints in the bidding document, as an ex ante condition, does not provide sufficient information on investor management capability. In this way, this information is only revealed in the renegotiation phase. Consequently, this contract failure results in high political costs to the government due to excessive subsidies.     

Effects of national identity salience on responses to ads

This paper investigates the effect of national identity salience on responses to ads in two contexts: national identity activated through media context, and national identity activated through advertising appeals. The results remain consistent with the idea that heightening national identity leads individuals to react more positively to representations of that identity. The salience manipulations serve to influence respondents' evaluations of ads and purchase intentions. Respondents present more favorable evaluations of ads and intentions to purchase the advertised products when the ads explicitly pair the advertised product with national identity symbols or rhetoric, as compared to when no such explicit pairing occurs. Further, the activation of individuals' national identity through media context affects the response to embedded ads, even when those ads do not explicitly pair the product with national symbols or rhetoric.     

HOUSEHOLDS’ BEHAVIOUR AND ENVIRONMENTAL EMISSIONS IN A REGIONAL ECONOMY

Households have significant demand-side potential to drive reductions in atmospheric emissions, including both direct and indirect emissions. Our analysis focuses on the behaviour of a regional economy (Aragon, Spain) and its impact on greenhouse gases (GHG) and sulphur dioxide (SO₂). Using a CGE model, we simulate scenarios and evaluate the environmental impact of adopting changes considered in the Aragonese Climate Change and Clean Energy Strategy. Specifically, we analyse the impact of electricity savings and the promotion of public transport (bus or train) versus private car use. The results indicate that 1 MWh of saving in electricity consumption by households could reduce emissions of GHG by 0.112 kt of equivalent CO₂ and 8.209 kg of SO₂ with a shift in demand preferences and 0.022 kt of equivalent CO₂ and 7.612 kg of SO₂ with an efficiency improvement. Moreover, household changes in demand preferences regarding private/public transport, also contribute to reduce emissions.     

Minimally altruistic wages and unemployment in a matching model with monopsony

A monopsony model with a symmetric equilibrium is developed where posting higher wages reduces employee departures. This monopsony implies that wage changes have small effects on profits so that employer altruism affects wages as well. Even selfish firms act altruistically if workers punish firms that fail to do so. If the marginal utility of income falls sharply with income, the model can explain modest responses of wages to shifts in labor demand. If there are fluctuations in the altruism required by workers, the low correlation of wages and employment and the sizes of the cyclical fluctuations in these two series can be rationalized.     

J. Walter Thompson, the Good Neighbor Policy, and Lessons in Mexican Business Culture, 1920-1950

This article looks at the corporate history of J. Walter Thompsonto examine the nature of U.S.-Mexican relations in the aftermathof the Great Depression and World War II. It contends that localconditions, along with a cadre of "progressive" Good NeighborPolicy diplomats, forced American companies to adopt the roleof "commercial diplomats," altering the nature of what, up to1940, had been a tense and bitter binational relationship. Thearticle shows how Thompson's role as a commercial diplomat changedits previous "capitalist missionary" approach and how it complementedAmerican diplomacy, including national security measures todisplace German commercial influence in Mexico during Word WarII.     

Blurring B2C and B2B boundaries: corporate brand value co-creation in B2B2C markets

ABSTRACT

This paper aims to explore how corporate brands co-create value with their multiple stakeholders in a B2B2C marketplace. Main data sources stem from in-depth interviews with top managers of a technology corporation in the financial sector. Findings depict a model that conceptualises the successful value co-creation process as the careful management of six specific drivers, namely: interdependency, direct approach, trust, strategic alignment, adaptive modus operandi, and knowledge sharing. Hence, the study offers new food for thought for scholars and practitioners who wish to improve their knowledge and understanding on brand value co-creation and corporate marketing.     

Privatization from the Acquirer's Perspective: a Mergers and Acquisitions Based Framework

Privatization, especially in developing countries, presents international firms with opportunities for market entry and growth, but acquirers have to consider the distinct characteristics of a state owned enterprise (SOE) and the influence of the government as seller and policy maker. This study introduces a model, based on mergers and acquisitions literature and microeconomic theory, that explains the critical relationships among characteristics of the SOE, the government, and the acquirer. Public administration research suggests that the critical characteristics of SOEs are their sources of funding and their mode of social control of the organization, and recent work in privatizing countries emphasizes the influence of the government. The theoretical framework for the model suggested here is derived from research within the field of strategic management on mergers and acquisitions. The paper develops propositions regarding the organizational fit between private firms and those heretofore owned by governments and discusses research and managerial implications.     

Measure for Measure: Exact F Tests and the Mixed Models Controversy

We consider exact F tests for the hypothesis of null random factor effect in the presence of interaction under the two factor mixed models involved in the mixed models controversy. We show that under the constrained parameter ( CP ) model, even in unbalanced data situations, MSB/MSE (in the usual ANOVA notation) follows an exact F distribution when the null hypothesis holds. We also obtain an exact F test for what is generally (and erroneously) assumed to be an equivalent hypothesis under the unconstrained parameter ( UP ) model. For unbalanced data, such a corresponding test statistic does not coincide with MSB/MSAB (the test statistic advocated for balanced data cases). We compute the power of the exact test under different imbalance patterns and show that although the loss of power increases with the degree of imbalance, it still remains reasonable from a practical point of view.     

Software Transparency

Software transparency is a new and important concern that software developers must deal with. As society moves towards increased automation, if citizens wish to exercise their right to know, the transparency of public services and processes acquires fundamental importance. Informed discourse is only possible if processes affecting the public are open to evaluation. Achieving software transparency to this level of openness faces several roadblocks. The paper reports on initial findings on exploring the obstacles for enabling software transparency.