In the air again: frequent flyer relationship programmes and business travellers' quality of life

This research explores whether frequent flyer programmes somehow add to the quality of life of the frequent business traveller (defined in this study as business flyers who had flown round trip 26 or more times in the past 12 months). A questionnaire was mailed to subscribers of a newsletter for members of frequent air and hotel programmes. Results indicated that frequent flyer programmes contribute positively to frequent business travellers' lifestyles and to their quality of life, perhaps by countervailing some of the negative aspects of frequent business travel. Copyright © 2003 John Wiley & Sons, Ltd.     

Participation,Recruitment Selection,and the Minimum Wage

In this paper, we re‐examine the efficiency of participation with heterogeneous workers in a search‐matching model with bargained wages and free entry. Assuming that firms hire their best applicants, we show that participation is always too low. The reason for this is a hold‐up phenomenon: to be active, a worker must pay the entire search cost whereas part of the gain from this investment goes to the firm. As a consequence, introducing a (small) minimum wage raises participation, job creation, and employment. Therefore, net aggregate income of the economy is increased.     

Micro-behaviors and structural properties of knowledge networks: toward a ‘one size fits one’ cluster policy

The economic returns of cluster policies have been recently called into question. Based on a “one size fits all” approach consisting in boosting R&D collaborations and reinforcing network density, cluster policies are suspected to have failed in reaching their objectives. The paper proposes to go back to the micro foundations of clusters in order to disentangle the links between the long run performance of clusters and their structural properties. We use a simple agent-based model to shed light on how individual motives to build knowledge relationships can give rise to emerging structures with different properties, which imply different innovation and renewal capacities. The simulation results are discussed in a micro-macro perspective, and motivate suggestions to reorient cluster policy guidelines towards more targeted public-funded incentives for R&D collaboration.     

Regulating oligopolistic industries: A generalized incentive scheme

This paper deals with the design of regulatory mechanisms for oligopolistic industries. The proposed incentive scheme consists of two parts: a subsidy depending upon a firm's contribution to an equilibrium price reduction, and a tax equal to the profit of the previous period. This mechanism is as effective in regulating oligopolies as the well-known incremental surplus subsidy scheme in a monopoly framework. The proposed scheme provides appropriate incentives to enforce competitive behavior in a Cournot oligopoly. The scheme is welfare improving even if firms collude.     

Stockholder returns and international acquisitions of financial firms: An emphasis on banking

The wealth effects for shareholders of American financial firms involved in foreign acquisitions and also the wealth effects for shareholders of U.S. target firms acquired by foreign concerns are the topics of this study. The findings indicate that stockholders of U.S. bidding financial firms (and its subset of banks) earn neither abnormal gains nor suffer abnormal losses upon the announcement of an acquisition or regulatory approval. On the other hand, stockholders of U.S. target financial firms (and its subset of banks) earn significant abnormal profits at both the announcement of the proposed acquisition and the announcement of regulatory approval of the acquisition. The wealth effects for these two samples are also compared to samples in which both parties to the acquisition are U.S. firms. The research suggests that there is no significant difference in the size of the announcement gains or losses for either stockholders of the target or bidding firms based on whether the acquisition is foreign or domestic. These findings conflict with prior research which indicates that, for firms in general, stockholders of U.S. targets earn significantly greater wealth benefits when they are acquired by foreign firms than by domestic firms. Overall, these results are consistent with a competitive market for acquisitions of financial firms in which buyers do not earn or lose at the announcement of an acquisition, and in which abnormal gains are received only by the sellers.     

Firm-level Intermediate Demand for Pacific Whiting Products: A Multi-attribute, Multi-sector Analysis

Variation in seafood prices resulting from differences in product characteristics are often obscured by highly aggregated data or data representing only upstream sectors. This can lead to myopic commodity-based analysis that fails to identify how changes in public and private fisheries management may impact product characteristics, market development, and long-run social benefits. Given these problems, alternative methods are needed to complement traditional demand, supply and cost-benefit analysis. Mail and personal surveys of seafood wholesalers were conducted to determine preferences for Pacific whiting products. The relative importance of fillet and headed and gutted product characteristics are determined using conjoint analyses and factorial-based market experiments. Estimation of relative profitability, probability of purchase and short-run "conditional" demand models reveal the importance of wholesaler characteristics, physical product characteristics and contractural arrangements. Marketing margins and demands for improved products are also estimated. Implications for private and public resource management are discussed.     

Structural breaks in Austrian foreign trade with Eastern Europe during the early 1970s

Between 1955 and 1987, Austrian trade with Eastern Europe was characterized by specific factors. On the one hand, trade flows were influenced by the central planning system in Eastern Europe. On the other hand, Austria applied non-standard policy tools to manage Eastern trade. Furthermore, Austrian trade with Eastern Europe was affected by the implementation of the free trade agreement with the European Communities (EC) and the change in the institutional framework for Eastern trade in the early 1970s. Austrian Eastern exports were fostered by increased export subsidies and barter trade. We assess the net effects of these contradictory measures of trade policy by estimating aggregate import and export equations and testing for a structural break in 1973. Our results are consistent with the view that Austria subsidized Eastern exports to pursue a countercyclical policy after 1973.

Off-ramps and on-ramps: keeping talented women on the road to success

Most professional women step off the career fast track at some point. With children to raise, elderly parents to care for, and other pulls on their time, these women are confronted with one off-ramp after another. When they feel pushed at the same time by long hours and unsatisfying work, the decision to leave becomes even easier. But woe to the woman who intends for that exit to be temporary. The on-ramps for professional women to get back on track are few and far between, the authors confirm. Their new survey research reveals for the first time the extent of the problem--what percentage of highly qualified women leave work and for how long, what obstacles they face coming back, and what price they pay for their time-outs. And what are the implications for corporate America? One thing at least seems clear: As market and economic factors align in ways guaranteed to make talent constraints and skill shortages huge issues again, employers must learn to reverse this brain drain. Like it or not, large numbers of highly qualified, committed women need to take time out of the workplace. The trick is to help them maintain connections that will allow them to reenter the workforce without being marginalized for the rest of their lives. Strategies for building such connections include creating reduced-hour jobs, providing flexibility in the workday and in the arc of a career, removing the stigma of taking time off, refusing to burn bridges, offering outlets for altruism, and nurturing women's ambition.     

Sustainable Consumption Governance: A History of Promises and Failures

What are the implications of the current international political, and economic settings for consumer policy, and, in particular, those regarding sustainable consumption? In terms of improvements in the efficiency of consumption, the settings have induced efforts to this effect and show potential for further progress. In terms of necessary changes in consumption levels and patterns, however, little progress has been made since the Rio Summit nor is there likely to be any in the near future. These two dimensions of sustainable consumption need to be differentiated, as there is a substantial amount of controversy regarding our ability to achieve sustainable consumption on the basis of improvements in efficiency alone. The paper traces these differences with respect to the work of the major international governmental organizations (IGOs) engaged in developing sustainable consumption governance. It argues that the lack of commitment to strong sustainable consumption among IGOs can be explained by their “weakness” as actors in global governance and the existence of strong opposing interests among consumers and business actors.