Economic Success Factors in Spanish Small Retail Businesses. An Analysis Based on Sector-Relative Definitions

The purpose of this study was to carry out a sectorial analysis of the strategic profile of successful small businesses in Spanish retailing. First, a one-dimensional statistical formalisation of the concept of small business was proposed, based on yearly sales revenue and relative to the sector. Likewise, some statistical formalisations of the concept of economic success were proposed, based on profit margins and also relativised according to sector. Once a conceptual framework was established, a sectorial model of strategic characterisation of successful small retailing firms was developed. The results of applying these proposals to the Spanish retail industry confirmed the importance of a sectorial approach as opposed to an overall analysis. This revised version was published online in August 2006 with corrections to the Cover Date.     

A continuous time approach to the pricing of bonds

This paper develops an arbitrage model of the term structure of interest rates based on the assumptions that the whole term structure at any point in time may be expressed as a function of the yields on the longest and shortest maturity default free instruments and that these two yields follow a Gauss-Wiener process. Arbitrage arguments are used to derive a partial differential equation which must be satisfied by the values of all default free bonds. The joint stochastic process for the two yields is estimated using Canadian data and the model is used to price a sample of Government of Canada bonds.     

On dichotomous choice contingent valuation data analysis: Semiparametric methods and Genetic Programming

The aim of this paper is twofold. Firstly, we introduce a novel semiparametric technique called Genetic Programming to estimate and explain the willingness to pay to maintain environmental conditions of a specific natural park in Spain. To the authors’ knowledge, this is the first time in which Genetic Programming is employed in contingent valuation. Secondly, we investigate the existence of bias due to the functional rigidity of the traditional parametric techniques commonly employed in a contingent valuation problem. We applied standard parametric methods (logit and probit) and compared with results obtained using semiparametric methods (a proportional hazard model and a genetic program). The parametric and semiparametric methods give similar results in terms of the variables finally chosen in the model. Therefore, the results confirm the internal validity of our contingent valuation exercise.     

Joint estimation using revealed and stated preference data: An application using a national forest

We combine contingent behaviour with travel cost data to estimate the change in the recreational use value of a National Forest due to quality and price changes. Instead of the usual improvement scenario, a hypothetical deterioration in the conditions of the forest due to a fire is considered. A dataset containing five observations for each respondent enabled the estimation of three models for which the number of scenarios differed. The results show that visitors are sensitive to price and quality changes and that in the forest fire scenario the intended number of trips would be reduced and that respondents would experience a welfare loss. Signs of inconsistency between preferences expressed by revealed and intended behaviour were found. This research also provides some indications that strategic bias affects answers to price changes.     

Environmental and socio-economic sustainability of chinampas (raised beds) in Xochimilco,Mexico City

The chinampas (raised beds) of Xochimilco, Mexico City, are highly productive, traditional wetland agricultural systems, which were able to feed most of the population in pre-hispanic times. There is a strong trend to substitute chinampas with plastic greenhouses for flower production, which creates negative impacts in the landscape, environment and culture. This study compares the environmental and socio-economic sustainability of chinampas and greenhouses, at both the farm and regional levels, using the MESMIS framework. Even though the results show that greenhouses are more profitable, the contribution of chinampas to ecosystem services cannot be substituted by greenhouses, as tree cover is lost, canals are filled and food is not provided. Greenhouses had a higher diversity, but also a higher agrochemical use and are heavily dependent on external inputs and subsidies. Chinampas have shifted from staple crops to commercial horticulture in order to remain a technically viable and economically feasible option for local farmers. However, compensation mechanisms for the provision of ecosystem services are urgently needed if this ancient system is to be maintained. The framework allowed the integration of indicators at both farm and regional scales, combining on-farm surveys with GIS techniques, which could assist in ecosystem service valuation.     

Exploring sources and outcomes of trust and commitment to nonprofit organizations: The case of Amnesty International Portugal

The interactions between customers and organizations have been regarded as a core aspect in cocreating and developing new products and practices. The current study explores these interactions in the context of citizens and nonprofit organizations. The study comprises two parts: (a) a qualitative approach using interviews and the analysis of social networks to better understand the organization's social media marketing practices and corresponding outcomes and (b) a quantitative approach to analyze antecedents and outcomes of trust and being committed to participate in a nonprofit organization such as Amnesty International. From the qualitative approach, the findings highlight that Amnesty International uses social media (Facebook) to share information, and citizens tend to consider sharing posts, but they do not express new ideas or interact with the organization. These findings contribute to structure the model analyzed in the second stage of the research. Regarding the qualitative approach, the results show that organizational credibility is the most significant driver of trust followed by communicative ability. Affectively commitment to participation and relationship perception act as outcomes of overall commitment.