Using revealed and stated preference data to estimate the scope and access benefits associated with cave diving

In a single-site travel cost model framework, revealed and stated preference data are jointly estimated to provide the first use-value estimate associated with recreational cave diving. Focusing on one of Florida's first magnitude springs, we estimate average per-person per-trip use values of approximately $155, generating annual cave diving use values in the region of $1075. Further, in an investigation of potential site quality changes, we find that divers are sensitive to scope effects with an additional cave system increasing annual per-person use values by approximately $100, while improved access yields an additional $50 in per-person annual consumer surplus. Finally, three additional model specifications are estimated and indicate that divers use different travel cost preferences when assessing their revealed and stated preference trip counts but a single preference structure to evaluate site quality changes.     

Dividend Stability, Dividend Yield and Stock Returns: UK Evidence

This paper establishes an empirical role for two measures of dividend stability (as a proxy for dividend policy) in explaining UK stock returns. There is little systematic empirical evidence concerning the relation between dividend stability, dividend yield and stock returns despite the fact that a variety of theoretical models point to dividend policy as an important stock attribute. Here we construct two definitions of dividend stability, one of which involves dividend cuts, and use a sample of all listed UK firms from 1975 to 1997 to explore the relationship between stock returns and a variety of characteristics, including dividend stability. We find an inverse correlation between the stability of past dividend policy and systematic risk. Both stability measures have explanatory power over returns, but this is concentrated in January.     

Entrepreneurial global franchise ventures: US and European franchisee failure strategic and empirical perspectives

Rapid United States and European franchise growth offers potential benefits for stakeholders and host counties, as well as the potential for failure. Franchisee failure research is a complex area confounded by varying failure definitions, approaches, an event-focus, and single-year data. This paper includes a strategic franchisee failure perspective that views franchisee failure as a multi-stage process rather than an event; new longitudinal data from the United States for over 780 franchise systems and 292,000 franchise units and United Kingdom franchisee failure data for over 700 franchise systems and 31,000 franchisee units; and estimates of current European business-format franchise market size, including selected Central and Eastern European countries. Understanding and mitigating franchisee failure provide potential lessons for franchisors and franchisees. Franchisee failure and the strategic implications for franchise entrepreneurial ventures is a significant research area that merits further study and analysis.     

GROWTH,COMMODITY PRICES,INFLATION AND THE DISTRIBUTION OF INCOME

A primary commodity price boom is underway. Given the role of internationally traded primary commodities as inputs into the productive process in the industrialized world, an important question arises: namely what effects will this price‐boom exert upon wage and price inflation in industrialized countries? In order to address this question, we specify and estimate a system of equations in which the key dependent variables are world commodity prices, the domestic inflation rate for finished goods and the rate of domestic industrial wage inflation. This model is estimated against data for each of three major industrialized countries: Japan, the UK and the USA and the implications of the results thus obtained are explored.     

Beyond epistemological pluralism: Towards an integrated vision of the future

This paper is a response to Epistemological Pluralism in Futures Studies, featured as a special edition of Futures (42:2). Since that special edition was a response to Integral Futures, a previous special edition of Futures (40:2), this paper begins with a treatment of some of the critiques of IF, as well as the critiques of Ken Wilber and integral theory. I examine the validity of those critiques, focusing in particular on the accuracy of the “portraits” given of Ken Wilber and his contribution to integral theory. I also examine the claims of “epistemological pluralism” to determine whether it is a more appropriate framework for futures inquiry and practice. In this consideration, I treat epistemological pluralism (devoid of an “integrating” theory) as an expression of skeptical postmodernism. Finally, I conclude with a historical overview of integral theory.     

A value-in-process analysis of relationship interactions in non-equity alliances

In the domain of relationship marketing, there is an increasing need for greater understanding of ‘value’ in the process of social exchange interactions. We present a framework for analysis of value creation through these interactions. Two types of value creating interaction are identified, asset specific investment and technical exchange. Taking a series of 197 project-based, non-equity alliances between architects and building contractors, we examine value creation through these interactions. The findings establish that value in the relationship process is co-created and that this occurs through an iterative investment in specific assets at the operational level throughout the alliance. Additionally, the exchange of technical information at the operational level is found to be a source of value for the relationship and has iterative and co-creational characteristics similar to investment in specific assets. We provide an explanation for the relationship between these interaction types and relational value. We also find that goodwill trust's positive relationship with the asset specific investment interaction type is stronger in low, rather than high, operational compatibility partnerships. The implications for researchers and managers are explored and study limitations acknowledged.     

U.S. CEOs of SBUs in Luxury Goods Organizations: A Mixed Methods Comparison of Ethical Decision-Making Profiles

This study involved using a mixed method research design to examine the moral philosophy difference between the ethical decision-making process of CEOs in U.S.-led and non-U.S.-led within the luxury goods industry. The study employed a MANOVA to compare the ethical profiles between the two leader types (US and non-US led) and a phenomenological qualitative process to locate themes that give indication as to the compatibility of the luxury strategy values and practices with the principles and concepts of responsible leadership and conscious capitalism. As the luxury goods industry is facing the first slowdown since 2000, pressure to achieve sales targets in the U.S. to make up for losses in other markets will place these CEOs under extreme pressure from their headquarters. These leaders must possess the ethical decision-making capability to balance legal and moral dilemmas unique to multinational luxury goods organizations while delivering business results in a challenging environment. Results of the study show no evidence of difference in the ethical decision-making profiles between the two groups of leaders. The themes and emergent findings resulting from the qualitative analysis indicate a profound incompatibility between the values informing decision-makers using the luxury strategy and those employed by leaders operating within the principles and parameters of responsible leadership and conscious capitalism. Recommendations for future research include replicating the study with a larger sample, within a different geographic region or comparing leaders using the luxury strategy to those using conscious capitalism.     

An experimental study of commitment in Stackelberg games with observation costs

We report on experiments examining the value of commitment in Stackelberg games where the follower chooses whether to pay some cost to perfectly observe the leader's action. Várdy [Games Econ. Behav. (2004)] shows that in the unique pure-strategy subgame perfect equilibrium of this game, the value of commitment is lost completely; however, there exists a mixed-strategy subgame perfect equilibrium where the value of commitment is fully preserved. In the data, the value of commitment is largely preserved when the cost of looking is small, while it is lost when the cost is large. Nevertheless, for small observation costs, equilibrium behavior is clearly rejected. Instead, subjects persistently play non-equilibrium strategies in which the probability of the follower choosing to observe the leader's action is a decreasing function of the observation cost.