Coasean bargaining with symmetric delay costs

Delay costs play a role in Coasean bargaining over environmental conflicts when an injunction restricts actions until a settlement is reached. Results from the lab suggest that efficiency remained relatively robust to discrete and increasing marginal delay costs, but declined significantly with nonincreasing marginal delay costs. Bargainers appear to deal with probability and consequences separately rather than in combination as maintained by expected utility theory, and as such, neglect ends over means. How the distribution of wealth is best organized depends on perspective: constrained self-interest best organizes behavior if expected utility is maintained; pure self-interest dominates if we acknowledge the probability–consequence heuristic.     

Capital in the Twenty-First Century: Reinterpreting the fundamental contradiction of capitalism

At a theoretical level this article discusses Piketty’s hypothesis that the distribution of income and wealth tends to become more concentrated over time when the rate of return on capital is greater than the growth rate of real output. We develop a post Keynesian model of growth and distribution showing that once capital is differentiated from wealth, the increase in income and wealth concentration actually occurs when the rate of valorization of financial and real estate assets is greater than the growth rate of real output, and that this situation may be triggered by financial liberalization.     

The Effectiveness of the U.K. Travel Allowance

This paper discusses a method for analyzing the pricing and production behaviour of a mature oligopoly, characterized by stable market shares and well established patterns of price leadership. The oligopoly utilized as an example is the US primary producers of copper. The paper develops three pricing/production strategies which are felt to be most relevant to the US primary producers. While one of these strategies (collusive monopolistic pricing) is more desirable to the oligopoly, the ability of the oligopoly to impose any of the strategies depends upon market conditions and government stockpile intervention. A generalized logit probability model is developed and estimated to indicate the effects of market conditions and government action upon the ability of the oligopoly to impose its desired pricing/production strategies.     

The determinants and effects of actual,abandoned and contested mergers

This paper reports the results of research aimed at exploring why some takeover bids give rise to merger while other do not and, using as a basis of comparison matched samples of actual and abandoned mergers, the performance effects of mergers. In this work, 50 cases of abandoned mergers occurring between 1965 and 1975 were analysed against a matched sample of 50 actual mergers. In addition, 33 cases of contested bids were also analysed. Variables used reflected managerial, shareholder and financial strength considerations. Analysis covered a period three years before to three years after each bid. Techniques of analysis were differences of means and discriminant analysis. The results show that there are important differences between target companies that are acquired and those that successfully resist takeover bids. They also show the influence of managerial and financial variables as the key to a successful takeover bid rather than variables reflecting shareholder interests. Analysis of the effects of the outcome of the bids suggests that companies involved in abandoned mergers recorded a stronger performance over the subsequent 1–3 years than those that made acquisitions, especially where shareholder and financial considerations are concerned. Target companies that resisted takeover bids showed a significant performance improvement.     

Transaction costs and crop marketing in the communal areas of Impendle and Swayimana,KwaZulu-Natal

High transaction costs are detrimental to the efficient operation or existence of markets for inputs and outputs. The cost of information and the costs associated with the search for trade partners, the distance to formal markets and contract enforcement are likely to influence the marketing of food crops. This study hypothesises that the level of income generated from food-crop sales by small-scale farmers in the Impendle and Swayimana districts of KwaZuluNatal is influenced by transaction costs and certain household and farm characteristics. Regression analysis shows that the depth of marketing methods is significantly influenced by transaction cost proxies, such as cooperation with large commercial farmers and ownership of means of transport. Results from a block-recursive regression analysis show that the level of crop income generated is determined by the depth of marketing methods, the size of allocated arable land and off-farm income. Households with lower transaction costs, sizeable allocated land and off-farm income can be expected to generate higher income from food crops. Investment in public goods such as roads, telecommunications and an efficient legal system (to uphold commercial contracts), as well as farmer support services (input supply, extension, marketing information and research), would probably raise farm and non-farm income by reducing transaction costs. This would increase the effective demand for locally produced goods and services, thus contributing to rural employment and livelihoods within rural communal areas.     

An alternative interpretation of the discontinuity in earnings distributions

We show that the asymmetric effects of income taxes and special items for profit and loss firms contribute to a discontinuity at zero in the distribution of earnings. Income taxes draw profit observations towards zero while negative special items pull loss observations away from zero. These earnings components are thus expected to contribute to a discontinuity even in the absence of discretion. We show our results are not an artifact of deflation and that other common components of earnings do not have similar effects on the earnings distribution around zero.

The importance of the firm and destination effects to explain firm performance

An interesting question in tourism management is why tourist firms obtain different performance levels. Firm performance in the tourism industry depends mainly on the destination where the company operates (location or destination effect), and on firm internal resources and characteristics (firm effect). The purpose of this paper is to determine the relative importance of the firm and destination effects using a multilevel approach and hierarchical linear models. The findings show that both effects impact significantly on firm performance, and also that the firm effect is more important than the destination effect. We equally provide some insights about the relationships between these two levels with the aim of building bridges between them.