Sole sourcing in EOQ models with Binomial yield

We develop two EOQ-based inventory models in which an inventory manager must determine the order size as well as the supply reliability level in the presence of uncertainty in the quality and/or quantity of supply. The number of acceptable units in the order is captured by the Binomial yield model, and reliability is increased both by increasing the order setup cost and by increasing the unit price. For each developed model, we present an equation of which a solution is the optimal reliability level and a closed form solution for the optimal order size given the optimal reliability level. We then provide a comparison of the two models.     

Kings and Vikings: on the dynamics of competitive agglomeration

This paper proposes a theory of competitive agglomeration—a new enquiry into the origins of hierarchical structures and governments. As a motivating example we analyze the Viking age—the roughly 300 year period beginning in 800 AD—from the perspective of the economics of conflict. The Viking age is interesting because throughout the time period, the scale of conflict increased—small scale raiding behaviour eventually evolved into large scale clashes between armies. With this observation in mind, we present a theoretical model describing the incentives both the defending population and the invading population had to agglomerate into larger groups to better defend against attacks, and engage in attacks, respectively. We tentatively postulate that competitive agglomeration during the Viking era was a key impetus to state formation in Europe.     

Particle filters for continuous likelihood evaluation and maximisation

In this paper, a method is introduced for approximating the likelihood for the unknown parameters of a state space model. The approximation converges to the true likelihood as the simulation size goes to infinity. In addition, the approximating likelihood is continuous as a function of the unknown parameters under rather general conditions. The approach advocated is fast and robust, and it avoids many of the pitfalls associated with current techniques based upon importance sampling. We assess the performance of the method by considering a linear state space model, comparing the results with the Kalman filter, which delivers the true likelihood. We also apply the method to a non-Gaussian state space model, the stochastic volatility model, finding that the approach is efficient and effective. Applications to continuous time finance models and latent panel data models are considered. Two different multivariate approaches are proposed. The neoclassical growth model is considered as an application.     

Equally important criteria and demanding aggregation

Within the class of weighted averages of ordered measurements on criteria of ‘equal importance’, we discuss aggregators that help assess to what extent ‘most’ criteria are satisfied, or a ‘good performance across the board’ is attained. All aggregators discussed are compromises between the simple mean and the very demanding minimum score. The weights of the aggregators are described in terms of the convex polytopes as induced by the characteristics of the aggregators, such as concavity. We take the barycentres of the polytopes as representative weights.     

Mandatory and binding arbitration: Effects on employee attitudes and recruiting results

This paper reports the results of two studies undertaken in the same Fortune 500 company as it adopted an Alternative Dispute Resolution (ADR) program. Study 1 assessed employees' perceptions of fairness, trust, and turnover intentions regarding ADR options. Compared with other options for ADR, a program consisting of mandatory mediation followed by mandatory and binding arbitration (MMBA) resulted in significantly lower levels of procedural fairness perception, organizational trust, and intentions to stay with the firm. Contrary to previous research, no significant effects were found related to respondents' demographic characteristics and their reactions to ADR program characteristics. In Study 2, job‐applicant flow data were evaluated and compared by corporate region to determine the effects of an MMBA program installed in one region. Results revealed no significant effects related to the MMBA program on the organization's ability to recruit and ultimately fill key positions. As in Study 1, no significant effects were found in Study 2 for the demographic characteristics of applicant race/ethnicity, gender, or age on applicant recruitment decisions. Although Study 2 results indicated job candidates are unaffected by the existence of an MMBA program, given Study 1's results, practitioners should be cautious about implementing such a program for current employees. © 2011 Wiley Periodicals, Inc.     

The welfare costs of monopoly are larger than you think

We show that monopoly is the parent of monopsony when an industry employs specialized resources. This means that the welfare loss from monopoly and monopolization is larger than commonly portrayed. Copyright © 2010 John Wiley & Sons, Ltd.     

Behavioural Orientations of Non‐Profit Boards as a Factor in Entrepreneurial Performance: Does Governance Matter?

Relatively little is understood about factors triggering entrepreneurial behaviour within organizations not driven by profit motives. Governance plays an important role in non‐profits, particularly boards of directors. Integrating resource‐based theory and entrepreneurial orientation research, we examine the influence of non‐profit boards as strategic resources shaping the organization's entrepreneurial orientation and performance. In particular, we focus on the non‐profit board's underlying behavioural orientations, or the extent to which the board is strategic, activist, conservative, and cohesive. Findings from a cross‐sectional survey on arts and culture organizations demonstrate that three of these behavioural orientations impact levels of entrepreneurship occurring within non‐profits. Higher levels of entrepreneurship affect social performance, but not financial performance.     

An empirical assessment of the cross-national measurement validity of graded paired comparisons

The popular use of graded paired comparisons in empirical studies assessing consumers’ preferences, and the potential effect of cross-national differences in (extreme) response styles on the quality of graded paired comparison data, supply ample reasons for an empirical verification of the cross-national validity of such scales. Using data from a cross-national margarine brand study including fourteen different nations (N = 4,560), we found sufficient statistical evidence for cross-national bias due to existing cross-national differences in extreme responses. However, the low values reported for effect size measures (intra-class correlation coefficient, R ² value) indicated that the impact of the cross-national bias is marginal. The findings from our study provided empirical support for the hypothesis that graded paired comparison data can be meaningfully compared across nations.