The Market and Efficient Resource Allocation

Graham Dawson, a very experienced teacher of economics at Bedford High School, gives the second in the series of Model Answers for 'A' Level economics.     

The Ethical Outlook of Micro Business Operators

This paper reports the findings of an investigation into the ethical outlook of micro business operators. The study was conducted in Australia and is the first such examination of ethical perspectives in this segment of the business population. Micro business is internationally recognizable, economically significant, and strongly entrepreneurial, and it has a high level of control over the values it enacts. The study indicates that ethical considerations are important to Australian micro business operators. While no one single ethical perspective was dominant, nonreligious beliefs and principles were found to be the most important determinant of their ethical values. Some variation was discovered in operator attitudes based on age, gender, and education.     

USING DIVIDEND POLICY AND MANAGERIAL OWNERSHIP TO REDUCE AGENCY COSTS

In this study we examine dividends and chief executive officer (CEO) stock ownership as interrelated mechanisms that may be used to reduce agency costs. We find a significant nonmonotonic relation between dividend yield and CEO stock ownership. Our evidence shows that until the CEO becomes entrenched, increased executive stock ownership reduces agency costs and decreases dividend yield. Beyond that point, increased stock ownership increases dividend yield. Whether additional stock ownership can reduce agency costs depends upon the CEO's degree of control in the firm.     

Less State, More Welfare

The long-familiar notion that welfare can be supplied only by the state has confused 'social' thought and policy. Dr Dawson, a PhD in Philosophy at Keele University and now a teacher at a comprehensive school, argues on the contrary that the less the state supplies, the more welfare will emerge.     

Multisource effects on the satisfaction formation process

Customer satisfaction research is integrated with research on higher education in developing a model of alumni satisfaction with college education. The model proposes that alumni satisfaction with higher education is a function of two performance and disconfirmation attributes: intellectual environment and employment preparation. The model was tested among 475 alumni of a major Eastern undergraduate business school and demonstrates the advantage of modeling the disconfirmation paradigm with multiple sources of satisfaction. She holds a Ph.D. in marketing from Michigan State University. Her work has appeared in theJournal of the Academy of Marketing Science, International Journal of Research in Marketing, Journal of Services Marketing, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, and proceedings of the American Marketing Association and the Association for Consumer Research. She was formerly an account executive at Needham Harper Worldwide and Director of Marketing at Maxwell Advertising. Her research interests include consumer satisfaction, complaining behavior, and advertising management. He received his Ph.D. in marketing from Michigan State University. His work has appeared in theJournal of Advertising, Journal of Retail Banking, Journal of Services Marketing, and theHaring Symposium Proceedings. He has held several positions in the banking industry, most recently as Group Vice President at Michigan National Bank in Grand Rapids. His research interests include services marketing, consumer satisfaction, and direct marketing. She received her Ph.D. in marketing from the University of Cincinnati. Her work has appeared in theJournal of Retailing, Industrial Marketing Management, Journal of Marketing Education, and other marketing-related publications. Her research interests include not-for-profit organizations, consumer satisfaction, and services marketing.