Producer Willingness to Pay for Precision Application Technology: Implications for Government and the Technology Industry

This paper focuses on the willingness to pay (WTP) for precision application/site-specific management technologies on the part of agricultural producers. We use a contingent valuation survey to elicit WTP for a package of technologies and examine the impact of government subsidies on potential demand. Results suggest that producer WTP is significantly lower than current technology prices, necessitating a 60% government subsidy to induce adoption, on average. Agronomic factors such as soil characteristic variability and soil quality are important determinants of WTP. In addition, how well the technology integrates into current farming practices and equipment also appears important.     

Business Ethics in Transitional Economies: Introduction

This paper introduces the special issue of papers selected from those presented at the International Conference on Business Ethics in Transitional Economies, held March 20–22, 2002 in Celakovice and Prague, Czech Republic. A brief background on the conference is given, and a summary of the papers offered in this special issue is provided.     

Directors' Recommendations in Takeovers: An Agency and Governance Analysis

Abstract:   This paper evaluates whether directors of target companies make response recommendations in takeovers which are consistent with the interests of shareholders, by examining the relationship between target director recommendations and associated takeover characteristics and ownership and corporate governance characteristics of target companies. The findings suggest that response recommendations appear to be more closely associated with the self‐interest of directors rather than shareholders' concerns, and that common governance initiatives aimed at aligning the interests of shareholders and managers are ineffective in resolving this agency problem. The results suggest the need for legislative or judicial reforms in Australia to encourage takeover activity and reduce takeover hostility.     

An Observer's Tale: Stonehaven Community Hospital

The authors have been observing the progress of a PFI project for the health service in Scotland. The case is significant for its being a modest scheme in contrast to some of the giant 25-year and £50M ventures receiving so much attention elsewhere. In addition, the scheme challenges some of the structural and policy givens of the new NHS.     

Alternative Dispute Resolution and Employee Voice in Nonunion Employment: An Ethical Analysis of Organizational Due Process Procedures and Mechanisms -- The Case of the United States

The purpose of this paper is to integrate and analyze the research findings of previous studies dealing both directly and tangentially with the strategic ethical issues involved in alternative dispute resolution procedures and systems found in nonunion employment. Particular attention will be given to one of the most significant issues in this area at the operating and tactical level of individual companies: the procedural techniques with respect to the processing of the complaints and grievances of employees in nonunion companies and firms. The paper concludes with policy recommendations for managers and recommendations for future research.     

Context,values and moral dilemmas: Comparing the choices of business and law school students

Much has been written about the ethics and values of today's business student, but this research has generally been characterized by a variety of methodological shortcomings — the use of convenience samples, a failure to establish the relevance of comparison groups employed, attempts to understand behavior in terms of unidimensional values preselected by the researcher, and the lack of well-designed longitudinal studies. The research reported here addresses many of these concerns by comparing the values and ethical decision making behavior of a large cohort of students entering an M. B. A. program to students entering law school. Using the Rokeach value survey and several ethical decision making vignettes, significant differences were found between the two groups which have important implications for both the business and legal professions and the education of their future leaders.     

The role of individual personality type in subjective risk elicitation outcomes

Managing uncertainty is an unavoidable challenge in a variety of decision contexts. On many occasions, objective data are not available, necessitating the use of experts. However, research into procedures to elicit and aggregate information from experts is difficult to validate or test empirically. A controlled economic experiment was used to assess subjective probability elicitation accuracy resulting from three alternative elicitation procedures and two aggregation alternatives. The empirical results provide evidence of the impacts of elicitation techniques, distribution type, and personal characteristics such as risk preferences and personality type on subjective risk assessment accuracy. Our conclusion is that experimental approaches hold promise as a technique to assess the forecast accuracy of aggregated subjective probabilities in a variety of contexts.     

Experimental evidence on trading behavior,market efficiency and price formation in double auctions with unknown trading duration

The reasons for the highly efficient market outcomes observed under the double auction remain unclear. This paper presents a series of experimental financial markets designed to investigate the importance of unknown trading period duration on trading behavior and the convergence tendencies of such markets. Using panel data techniques the results support the conclusions that individuals generally display more aggressive trading strategies, trading earlier in a period, and that markets exhibit reduced levels of informational efficiency when unknown duration is present. Markets with imperfect information structures are also studied and, in a unique result, are associated with significantly slower rates of trade, as traders become more cautious over their trading strategies. Investigation of the price formation process provides evidence that the pricing error varies over time and the estimation of a fixed effects model provides unique support that learning effects and unknown trading period duration influence the price formation process. Future refinement of theoretical models of the price formation process or institutions of exchange should recognize the effect of unknown trading period duration on market behavior, along with potential learning effects. Copyright © 2005 John Wiley & Sons, Ltd.     

Ethical Standards for Stockbrokers: Fiduciary or Suitability?

What are the ethical obligations of the sellers of financial products to their customers? Stockbrokers in the U.S. have a legal and ethical requirement to recommend only “suitable” investments to their customers. This is a fairly weak standard. Currently, there are proposals to raise the standard to a fiduciary one in which the recommendations would have to be in the best interests of the clients. Brokers sell solutions to financial problems. Similar to an auto mechanic or a doctor, the product often consists of both the professional advice and its implementation. There are numerous conflicts of interest between brokerage firms and their customers in that the products that pay the highest commissions may not be the best ones for the customers. The societal perspective adds complications, however. Society depends on modern financial markets to raise capital for productive enterprises and to spread risk. Issuers of financial products need distribution channels for their products just like the producers of any other products. Commissions create powerful incentives for the distribution channels, but at the same time produce conflicts of interest—a type of ethical pollution. Just as our society tolerates some pollution as a byproduct of other useful activities, it may be useful to tolerate some of these financial conflicts of interest. The nature of the relationship should govern the ethical standard. Those selling advice, regardless of how they label themselves, should adhere to a best-interest fiduciary standard. More limited relationships should be limited to the mandate involved in the relationship.