The durability of consumer durables

The life span of a product is a key component in assessing its environmental impact. Until very recently, however, product durability was far from prominent in the environmental debate. This has begun to change due to mounting concern about waste, the prospect of producer ‘take back’ schemes and the importance of quality in highly competitive international markets. This has led to product durability emerging on the business and environment agenda. This paper explores the significance of product life spans and identifies currently available data on the life-span of consumer durables. It defines product life and argues that, from an environmental perspective, optimum product life, rather than maximum product life should be the goal. It suggests that potential advantages to businesses of manufacturing and retailing products with longer life spans include improved environmental foresight (i.e. a greater responsiveness to new social trends, changes in consumer behaviour and tighter government regulations), an enhanced reputation for quality, greater potential market share and increased customer loyalty. Addressing claims that manufacturers deliberately make products with the intention that they should have life spans below the known technical potential, the paper identifies some of the influences upon manufacturers which encourage shorter product life spans. Finally, some means by which longer life products might be encouraged are proposed.     

From Experience: Avoiding Marketing's Best-Of-The-Best Specification Trap

Too often companies fall into a trap when developing a list of performance specifications for a new product. Milton Rosenau calls this the best-of-the-best specification trap. The problem arises whenever a company bases a specification on the combination of the best single features observed in available competitive products. When this happens, the new product's design is driven by competition and is not derived from a unique market insight. This may not provide the basis for a sustainable advantage. Sometimes, rumors of competitive improvements may even lead to sudden changes in the specification, creating delays in the development process. A far better goal is to develop a specification that responds to an unrecognized and unfilled user need, one that adds high value to users. His points are illustrated with several examples.     

"Flexible" Work Practices and Occupational Safety and Health: Exploring the Relationship Between Cumulative Trauma Disorders and Workplace Transformation

This article matches establishment-level data on workplace transformation (e.g., quality circles, work teams, and just-in-time production) with measures of cumulative trauma disorders at these same establishments to explore the relationship between "flexible" workplace practices and workplace health and safety. The results reveal a positive, statistically significant, and quantitatively sizable relationship between cumulative trauma disorders and the use of quality circles and just-in-time production.     

Exact Ruin Probabilities and the Evaluation of Program Trading On Financial Markets

For a compound Poisson process with negative drift and jump distribution consisting of a mixture of exponentials on [0) and on (-, 0), an exact expression is derived for the probability of hitting the level c, c > 0. the problem is motivated by modeling the returns from trading on financial markets.     

WARRANT PRICING USING OBSERVABLE VARIABLES

The classical warrant pricing formula requires knowledge of the firm value and of the firm‐value process variance. When warrants are outstanding, the firm value itself is a function of the warrant price. Firm value and firm‐value variance are then unobservable variables. I develop an algorithm for pricing warrants using stock prices, an observable variable, and stock return variance. The method also enables estimation of firm‐value variance. A proof of existence of the solution is provided.     

CAN INEFFICIENT TRADERS CREATE VALUE?

I examine the aggregate expected profit generated by informed traders of diverse ability in a competitive market. I assume that efficient traders get perfect information on asset values whereas inefficient traders get noisy information. In the presence of order size restrictions, I show that the aggregate expected profit generated by efficient and inefficient traders together can be higher than that generated by efficient traders alone. Thus, inefficient traders can create value in a constrained trading environment.     

The Impact of Regulation Fair Disclosure on Information Asymmetry and Trading: An Intraday Analysis

This study examines the impact of Regulation Fair Disclosure (FD) on liquidity, information asymmetry, and institutional and retail investors trading behavior. Our main findings suggest three conclusions. First, Regulation FD has been effective in improving liquidity and in decreasing the level of information asymmetry. Second, retail trading activity increases dramatically after earnings announcements but there is a significant decline in institutional trading surrounding earnings announcements, particularly in the pre‐announcement period. Last, the decline in information asymmetry around earnings announcements is closely associated with a lower participation rate in the pre‐announcement period and more active trading of retail investors after earnings releases.     

Bayesian MCMC Mapping of Quantitative Trait Loci in a Half-sib Design: a Graphical Model Perspective

Graphical models provide a powerful and flexible approach to the analysis of complex problems in genetics. While task-specific software may be extremely efficient for any particular analysis, it is often difficult to adapt to new computational challenges. By viewing these genetic applications in a more general framework, many problems can be handled by essentially the same software. This is advantageous in an area where fast methodological development is essential. Once a method has been fully developed and tested, problem-specific software may then be required. The aim of this paper is to illustrate the potential use of a graphical model approach to genetic analyses by taking a very simple and well-understood problem by way of example.