The “Adjustable-curtain” Strategy: Overbooking of Multiclass Service

The “adjustable-curtain” strategy, now commonly practiced by many airline companies, refers to a strategy where the airline adjusts the size of the business-class section of the aircraft shortly before boarding takes place. This strategy enables the carrier to deny boarding of economy-class passengers in an event of a high show-up of business-class (high-paying) passengers by simply enlarging the business-class section at the expense of the economy-class section (and of course, the other way around, in a case of a low show-up of business passengers). This paper develops a simple method of computing a profit-maximizing reservation policy which determines the number of business- and economy-class bookings taking into account that the adjustable-curtain strategy will be utilized prior to boarding. Received July 27, 2001; revised version received October 5, 2001     

Not every public sector is a field: evidence from the recent overhaul of the English NHS

ABSTRACT

A structural interpretation of institutionalism has become dominant in public management research. Yet, studies tend to assume an institutional-level phenomenon without specifying how an organizational field was identified or whether structural characteristics can indeed be found in the organizational population studied. This lacuna is illustrated by exploring the structural interpretation of the field construct in the case of the recent overhaul of English primary care. Findings demonstrate the need for a more robust application of institutionalism in empirical research. Possible research problems for public management and a future research agenda based on a more relational approach to fields are discussed.     

Market structure and diversification of mutual funds

This study characterizes a systematic relationship between the diversification incentives and the market structure of the mutual funds industry with investors differentiated by their attitude towards risk. With sufficiently low competition the subgame perfect portfolio equilibrium exhibits maximal risk differentiation. With intensified competition intermediate funds, i.e., those attracting investors with intermediate attitudes towards risk, select diversified portfolios. Finally, we offer a general characterization of how imperfect competition between risk-differentiated funds will generate an equilibrium relationship between risk and expected returns.     

Dynamic models of religious conformity and conversion: Theory and calibrations

This paper develops overlapping generations models to explain and simulate changes in the proportion of secular and religious people. The church is modeled as generating an externality associated with “conformity-enhancing” education. Observed changes in the number of nonbelievers are explained by different birth rates among secular and religious parents and the relative proportion of young nonconformists. Calibrations for the conformity rates among secular and religious people show that the observed long-run increase in the difference between percentage of secular people in Europe and the United States can be attributed to lower conformity rates prevailing in Europe.     

Understanding Managerial Work Values in Turkey

The objective of this study was to explore certain managerial work values in Turkey. A total of 1023 managers from six Turkey regions participated in the study and filled out the questionnaires. Findings were analyzed using regression and anova analyses. A total of three managerial work value factors emerged, which was supported by the current value literature. It was found that there was a relationship between work values and organizational size. The lower the organizational size, the higher the proper values are held. However, organizational tenure, the number of subordinates a manager is responsible, and the educational level of a manager had no significant effect on holding work values. The proper values outnumbered the improper values significantly. The three most held work values were integrity, doing work with care and discipline, and achievement. The three least held values were cliquishness, laziness, and hypocrisy.     

Biotechnology as a low-level-of-coherence policy priority: effectual-targeting and the need for learning and experimentation capabilities

During the last two decades, policymakers in various positions have been adopting a systems-approach to policy thinking. However, in contrast with the quasi-evolutionary way in which policy is thought of and conceptualised it seems that policy doing is still being guided by ‘market-failure’ justifications causing actual policies to remain narrow in their scope. In this paper we sidestep this analytical divide of thinking/doing by developing a co-evolutionary framework that utilises a more productive analytical divide of means/ends. That is to say we focus on a process of co-evolution of a higher-order, one which takes place ‘inside’ the agent of policy herself, and involves changes in the ways ‘means’ and ‘ends’ are understood and acted upon. Conceptualising policy problems in terms of means/ends contributes to current debates by rendering the difficulty that countries are facing in their attempts to prioritise biotechnology more intelligible and thus manageable.     

Personal Values’ Influence on the Ethical Dimension of Decision Making

Personal values have long been associated with individual decision behavior. The role played by personal values in decision making within an organization is less clear. Past research has found that managers tend to respond to ethical dilemmas situationally. This study examines the relationship between personal values and the ethical dimension of decision making using Partial Least Squares (PLS) analysis. The study examines personal values as they relate to five types of ethical dilemmas. We found a significant positive contribution of altruistic values to ethical decision making and a significant negative contribution of self-enhancement values to ethical decision making. Dr. David J. Fritzsche is a retired Professor of Management and Organization at The Pennsylvania State University, Great Valley. Among the numerous journals in which he published are Journal of Business Ethics, Academy of Management Journal, Journal of Macromarketing, and Simulation & Games. He is the co-author of the Business Policy Game: A Strategic Management Simulation. He authoured the book Business Ethics: A Global and Managerial Perspective (McGraw-Hill, 1997). Dr. Effy Oz is a Professor of Management Science and Information Systems at The Pennsylvania State University, Great Valley, where he teaches courses on IT management, ethical issues in IT, and business-stakeholder relations. He has authored several textbooks including five editions of Management Information Systems (Course Technology Inc., 1998–2006), Foundations of E-Commerce (Prentice-Hall, 2002) and, Ethics for the Information Age (McGraw-Hill, 1994), and a practitioner’s book (The Manager’s Bible, Ivy League Publishing, 1998). He has also published research articles in academic and professional journals, among which are MIS Quarterly, Communications of the ACM, Information & Management, Decisions Sciences, OMEGA, Journal of Business Ethics, and Journal of Computer Information Systems. Dr. Oz is a member of the editorial boards of Encyclopaedia of Information Systems, Information & Management, and Journal of Global Information Technology Management. He is a frequent speaker at IT conferences, has conducted research on a number of IT topics, and has been quoted in numerous media including Computerworld, MSNBC, and the Los Angeles Times. He was awarded the 1997 Notable Contribution to the Information Systems Literature Award by the Information Systems Section of the American Accounting Association, the 1999-2000 Distinguished Faculty Research Award at Penn State Great Valley, and Best Paper Award at the Annual Global Information Technology Conference of 2004.     

Real Estate Brokers and Commission: Theory and Calibrations

This paper has two goals: (a) To model an inherent conflict of interest between a seller of a house and the real estate broker hired by the seller. In this environment, the pressure brokers exert on sellers to reduce prices generates faster sales and hence reduces sellers?? expected profit. (b) To calibrate the brokers?? commission rates that would maximize sellers?? expected gain. The calibration results may hint whether the ongoing uniform commission rate reflects collusion among real estate agencies, or should be viewed as competitive.     

A Welfare Evaluation of History-Based Price Discrimination

We design an asymmetric duopoly model with inherited market dominance such that the dominant firm and the smaller firm can price discriminate based on consumers’ purchase history. We show that uniform pricing softens competition leading to higher industry profits than under history-based pricing. Consumers benefit from history-based price discrimination unless the switching cost is sufficiently high and the inherited degree of dominance is sufficiently weak. A ban on history-based pricing would typically introduce a distributional conflict between consumers and producers. Finally, we establish that the gains to industry profits associated with uniform pricing exceed the associated losses to consumers.     

A Short Survey of Network Economics

This article surveys a variety of topics that are related to network economics. Topics covered include: consumer demand under network effects, compatibility decisions and standardization, technology advances in network industries, two-sided markets, information networks and intellectual property, and social influence.