An experimental investigation of soft price caps in uniform price auction markets for wholesale electricity

This paper presents the results from an auction experiment using industry professionals and student participants who compete in a simulated wholesale market for electricity. Motivated by the intervention by FERC in response to the “meltdown” of the California spot market, we investigate the effect of including a “soft” price cap in a uniform price auction as a means of mitigating high prices. When prices are driven above the soft cap, offer curves become flat, in contrast to the hockey stick shape observed in a typical uniform price auction for electricity. This flat offer curve leads to market prices that are relatively insensitive to both generation costs and demand reductions.      

Parental Compensatory Behaviors and Early Child Health Outcomes in Cebu, Philippines()

A dynamic optimization model of parents choosing investments in their children's health motivates an empirical model of parents' choices of health inputs for their children and the impacts of these decisions on their children's subsequent health. Estimates of the child health input demand functions and the child health production functions from the Cebu Longitudinal Health and Nutrition Survey accord with the prediction that optimizing behavior results in higher levels of aggregate child health. Observable parental behaviors respond to the physical developmental status of their children. These parental responses appear to yield large and statistically significant improvements in children's early physiological outcomes. However, because some health inputs choices are not observable, it is impossible to ascertain whether these measured effects are due solely to variations in the observed input choices.     

Fair welfare maximization

We consider the general problem of finding fair constrained resource allocations. As a criterion for fairness we propose an inequality index, termed “fairness ratio,” the maximization of which produces Lorenz-undominated, Pareto-optimal allocations. The fairness ratio does not depend on the choice of any particular social welfare function, and hence it can be used for an a priori evaluation of any given feasible resource allocation. The fairness ratio for an allocation provides a bound on the discrepancy between this allocation and any other feasible allocation with respect to a large class of social welfare functions. We provide a simple representation of the fairness ratio as well as a general method that can be used to directly determine optimal fair allocations. For general convex environments, we provide a fundamental lower bound for the optimal fairness ratio and show that as the population size increases, the optimal fairness ratio decreases at most logarithmically in what we call the “inhomogeneity” of the problem. Our method yields a unique and “balanced” fair optimum for an important class of problems with linear budget constraints.     

Building value through sustainable project management offices

Organizations' attempts to implement and gain value from investments in project management have resulted in the rapid growth and, in some cases, demise of project management offices (PMOs). The recent research literature on PMOs provides an ambiguous picture of the value case for PMOs and suggests the tenuous nature of their current position in many organizations. In studying project management implementations for the Value of Project Management project, we chose to use three detailed cases and comparisons with the remaining 62 organizations in the value project to study how PMOs are connected to value realization for organizations investing in project management. Specifically, we sought to understand how PMOs deliver sustained value to organizations. Using the theories of Jim Collins (Collins, 2001; Collins & Porras, 1994) as an interpretive framework, we explore these cases to understand how to create and sustain project management value through investment in PMOs.     

The value of project management to organizations in Canada and Germany,or do values add value? Five case studies

Five case studies have been conducted: four in Canada and one in Germany. The authors of this article were particularly interested in understanding the value of values and meaning in the context of project management implementation and project environments. The article first summarizes the authors' particular approach. It then discusses the five case studies and their findings. These findings will be grouped around the concepts of value of project management and meaningful work. In conclusion, the findings of this study will be summarized across all five case studies and based on a comparative content analysis.     

Why risk popular ratification failure? A comparative analysis of the choice of the ratification instrument in the 25 Member States of the EU

Following the European integration history, referenda are a risky ratification strategy. Despite establishing a convention and intense treaty negotiations, an unprecedented number of eleven member states announced a referendum for the ratification of the constitutional treaty in 2004, two of them finally failed and stalled the ratification process. This study examines the choice of the ratification instrument by an empirical analysis of the strategic interaction between government, opposition parties and the electorate in the 25 ratification countries. Our analysis considers country-specific conditions and correctly predicts most of the ratification choices in countries which announced referenda (65%) and almost all parliamentary ratification cases (93%). The results reveal that governments choose referenda when they expect low gains from a treaty reform or are confronted with a Euro-sceptical parliamentary opposition. We also find that governments are eager to separate popular votes from domestic electoral campaigns.     

The sales recovery audit: Learning to walk the talk

Little research attention has been devoted to the impact of salesperson failure and recovery management on customer relationship development. This paper develops a theoretically anchored and externally validated sales recovery audit for the purpose of assessing sales organization performance in these matters. Results based on a survey of 177 sales managers indicate that practice of sales recovery efforts lags behind their perceived importance as they relate to organizational success. The sales recovery audit presented here can be a useful tool to continuously evaluate and enhance sales recovery efforts for the purpose of building a stronger relationship selling organization.     

Assessing supply chain risks with the analytic hierarchy process: Providing decision support for the offshoring decision by a US manufacturing company

This paper reports the process used by a US manufacturing company to assess supply chain risks within the context of an offshore sourcing decision. The case study company was faced with the objective of finding a new supplier for two of its major product lines. Five alternatives were considered: (1) sourcing finished goods from Mexico; (2) sourcing finished goods from China; (3) sourcing parts from China and assembly in the US; (4) sourcing parts from China, assembly in a Maquiladora in Mexico with investment; and (5) sourcing parts from China, assembly in a Maquiladora in Mexico with no investment in the venture. To find the best solution, action research methodology was combined with the application of the analytic hierarchy process (AHP). Through iterative and structured discussions, 17 risk factors were identified, which were subsequently grouped into main and sub objectives. AHP was then used to evaluate the importance of each risk factor, and to determine the best alternative. This study makes several contributions to the field of purchasing and supply management. First, it provides a comprehensive framework of empirically derived risk factors to be considered in an international sourcing context. Second, it shows how AHP can be used to assess these risk factors and alternatives as part of the framework to facilitate and support the final offshoring decision. And third, it illustrates the successful application of the approach by a US manufacturing company. As such, this paper contributes to the research streams of offshoring and risk management in purchasing and supply, as well as to decision-making under uncertainty and AHP. In addition, it serves as a practical methodology for firms in similar situations.     

Promise and peril in implementing pay‐for‐performance

Why would managers abandon pay‐for‐performance plans they initiated with great hopes? Why would employees celebrate this decision? This article explores why managers made their decisions in 12 of 13 pay‐for‐performance “experiments” at Hewlett‐Packard in the mid‐1990s. We find that managers thought the costs of these programs to be higher than the benefits. Alternative managerial practices such as effective leadership, clear objectives, coaching, or training were thought a better investment. Despite the undisputed instrumentality of pay‐for‐performance to motivate, little attention has been given to whether the benefits outweigh the costs or the “fit” of these programs with high‐commitment cultures like Hewlett‐Packard was at the time. © 2004 Wiley Periodicals, Inc.     

Gibt es eine indirekte Wirkung von Wahlumfragen?

The question of whether or not the publication of election poll results has an effect on voting behaviour has been raised since the very beginning of survey research. Various hypotheses on the direction of such effects exist, and many studies attempted to test them. However, the most we know is that we lack support for the assumption of a general influence. Rather than looking at direct effects of published poll results on voting behaviour, this paper tries to measure their indirect effects. Using a combination of trend surveys and content analysis, we investigate the effect of survey results on the coverage of the media. We can show that changes in public opinion slightly precede changes in media coverage. We interpret this finding as a possibility of an indirect effect of published poll results, which should encourage further research on this phenomenon.