Do Newspaper JOAs Charge Monopoly Advertising Rates?

Conventional wisdom argues that all commercial and economic competition between two daily newspapers stops when they merge their advertising and printing capabilities to form a joint operating agreement (JOA). Clearly the JOA acts a monopolist in the sale of advertising, but there are two forces that may constrain the JOA to sell more advertising than a profit maximizing single paper monopolist would find optimal. First, there is the possibility of what is sometimes termed ``end game competition'. Disposition of assets from a JOA are often not determined until the JOA is near its termination date, and this may induce the weaker paper to maintain quality, both to improve its bargaining position and to keep open the possibility of remaining in the market as a competitor at the end of the JOA. Second, a daily paper arguably has to maintain a certain level of advertising and maintain a certain ``look' and ``feel' if it is to be considered a daily paper. This may constrain the JOA to sell more advertising and maintain a higher joint circulation than might be optimal for a single paper monopolist. We present econometric evidence that shows JOAs to have ad rates that are closer to those of competitive dailies than to those of single paper and 2-edition monopolists.     

Tourism environments and management

The Congress of the World Leisure and Recreation Association, held in Sydney, Australia 16–19 July 1991, had as its focus the theme of ‘Leisure and tourism: social and environmental change’. Among over 140 papers on varied management, research and education issues a number examined the frameworks used to understand tourism environments and their management. Bill Bramwell, of the Centre for Tourism at Sheffield City Polytechnic, assesses the new insights offered by these papers.     

Book reviews

The Co-operation Phenomena: Prc)spects for Small Firms and the Small EconomiesDermont O'Doherty (Ed.)London, Irish Science and Technology Ajrency, Graham & Trotman, 1990, 270pp.

Flexible Manufacturing Technologies & International Competitiveness J. Tidd London, Pinter, 1991, ll3pp., £35.00.

Technology Strategy and the Firm: Management and Public Policy Mark Dodgson (Ed.)London, Longman, 1990, 252pp., £25.00 pb.

Computerization in Developing Countries: Model and Reality Per Lind London, Routledge, 1990, 175pp., £35.00 hb.

The Fifth Branch—Science Advisers as Policy Makers Sheila Jasonoff Cambridge, MA, Haroard University Press, 1990, 302pp., £22.50.     

Pricing practices in two industries

Although a critical part of marketing decision making, very little has been written about industrial pricing policy and strategy. This article has three objectives: First, to report the pricing practices of the chemical and construction industries; Second, to compare their pricing policies; and third, to develop a simple pricing framework for industrial marketers. The results of this study are interesting and somewhat unexpected. The buyer and his behavior only play a small part in pricing policy. A pricing framework or model is presented in a logical and systematic way.     

Assessing Cumulative Evidence within ‘Macro’ Research: Why Meta‐Analysis Should be Preferred Over Vote Counting

Understanding the conclusions a body of evidence offers involves accumulating findings. Two recent articles used vote counting to assess the evidence related to important macro theories: transaction cost theory and resource‐based theory. Each concluded that its focal theory is not well supported. In contrast, recent meta‐analyses of the same theories concluded that both are strongly supported. We explain why macro researchers should trust the findings of meta‐analyses but not those of vote counts. A direct implication is that researchers interested in advancing transaction cost and resource‐based theories need to build upon the meta‐analytic evidence. A broader implication is that, as the preferred method for accumulating evidence, meta‐analysis can be a catalyst for the re‐evaluation of established theories and the development of new theory.     

Normative Violence in Domestic Service: A Study of Exploitation,Status, and Grievability

Journal of Business Ethics - This paper contributes to business ethics by focusing on consumption that is characterized by normative violence. By drawing on the work of Judith Butler this study of...     

Intangible assets and value relevance: Evidence from the Portuguese stock exchange

We assess the value relevance of the amounts for identifiable intangible assets and goodwill reported in the financial statements of all non-finance companies listed on the main market of the Portuguese Stock Exchange from 1998 to 2008. Additionally, we use panel data to explore the impact on value relevance of Portugal’s formal adoption of International Accounting Standards [IAS] and International Financial Reporting Standards [IFRS] in 2005. A distinctive feature of the accounting by our sample companies is that when they adopted IAS 38 and IFRS 3 in 2005, they were no longer required to recognise some intangible assets (such as start-up costs and research expenditures) and were no longer required to amortise goodwill.We find that net earnings, reported goodwill and other intangible assets are highly significantly associated with stock price. However, whereas earnings are related positively to stock prices when Portuguese Generally Accepted Accounting Principles (GAAP) were applied prior to 2005, the value relevance of earnings appears to have declined after the adoption of IAS/IFRS in 2005. Although the change to IAS/IFRS had no impact on the value relevance of identifiable intangibles as a whole, the evidence suggests that there was a positive effect on the value relevance of goodwill. When the subclasses of identifiable intangible assets are considered, we found evidence of an increase in value relevance of goodwill, other intangible assets, and research and development expenditures.     

Flood Hazards and Urban Housing Markets: The Effects of Katrina on New Orleans

This study examines the impacts on consumers’ willingness to pay for certain characteristics of housing in greater New Orleans before and after the flooding of Hurricane Katrina. Single-family home sales from January 2004 to August 2006 are collected and used in a hedonic price function to estimate the changes in the value of amenities, and structural, neighborhood and geographic characteristics, including the mean elevation of each property. Elevation, which buyers did not know for certain prior to the storm, but may now be inferred from water level marks in most neighborhoods, is found to have a positive relationship with selling prices. Results indicate that pre-Katrina, there was a premium of only 1.4% per foot in flood-prone areas, and was insignificant in areas not subject to flooding. This increased to 4.6% for flooded areas after Katrina. These findings are attributed to not only the perceived risk of flooding, but also to the potential of higher compliance costs associated with rebuilding under more stringent National Flood Insurance Program (NFIP) guidelines.