Capabilities and utilities

This paper deals with the problem of looking for resource allocation mechanisms which would be accepted as just in Sen's capabilities framework. We start by suggesting a way of simplifying Sen's idea of capability by using acapability index which measures the ability of a person to function. Then we look for mechanisms providing allocations which could be deemedjust, in pure distribution problems. An allocation will be called just when its corresponding capabilities are leximin suprema. We provide a characterization result of this mechanism in a framework which mimics Roemer's bargaining in economic environments, in which the role of utility functions is now played by capability indices. When a positive relationship between capability indices and utilities exist, just allocations are optimal in utility terms.     

Costly investment, complementarities and the skill premium

We propose a new framework to analyse the relationship between the relative high-skilled labour endowment, the skill premium and economic growth. Building on Acemoglu and Zilibotti (2001), we introduce physical capital; internal costly investment in both capital and R&D; and complementarities between intermediate goods. We only find a positive relationship between the relative labour endowment and both the skill premium and economic growth within determined intervals of relative labour endowment values, which vary with the absolute productive advantage of high over low-skilled labour. The model thus accommodates theoretically mixed empirical results on the relative labour endowment-skill premium relationship. We further find that the impact on both the relative labour endowment and the skill premium of a rise in investment costs or in the complementarities degree depends on: (i) the absolute productivity advantage of high over low-skilled labour; and (ii) the relative labour endowment.     

Oil and the macroeconomy: using wavelets to analyze old issues

We use (cross) wavelet analysis to decompose the time–frequency effects of oil price changes on the macroeconomy. We argue that the relation between oil prices and industrial production is not clear-cut. There are periods and frequencies where the causality runs from one variable to the other and vice-versa, justifying some instability in the empirical evidence about the macroeconomic effects of oil price shocks. We also show that the volatility of both the inflation rate and the industrial output growth rate started to decrease in the decades of 1950 and 1960.     

How to talk to multiple audiences

Stochastic fictitious play (SFP) assumes that agents do not try to influence the future play of their current opponents, an assumption that is justified by appeal to a setting with a large population of players who are randomly matched to play the game. However, the dynamics of SFP have only been analyzed in models where all agents in a player role have the same beliefs. We analyze the dynamics of SFP in settings where there is a population of agents who observe only outcomes in their own matches and thus have heterogeneous beliefs. We provide conditions that ensure that the system converges to a state with homogeneous beliefs, and that its asymptotic behavior is the same as with a single representative agent in each player role.     

Trade agreements and international comovements: The case of NAFTA (North American Free Trade Agreement)

Business cycles correlation between Mexico and the US changed from being on a downward sloping path before 1992 to an upward sloping path after that. This paper suggests that the North American Free Trade Agreement could be the explanation. NAFTA generated not only an increase in the volume of trade but also a change in the elasticity of substitution between imports and exports. The paper tests this hypothesis using the neoclassical business cycles model. Although there are still some discrepancies between the theory and data in the degree of correlation, the direction of change in the model corresponds to the one in the data.     

Strategies for Adopting Consumer‐generated Media in Small‐sized to Medium‐sized Tourism Enterprises

Consumer‐generated media (CGM) are created when consumers submit, review or respond to online content. The bulk of research into CGM has focussed upon its use by consumers, with less research examining the use of CGM by small businesses. This article discusses small business sector use of online technologies such as CGM, concentrating on tourism small businesses as a key industry sector affected by CGM activities. A CGM ‘strategy’ framework, developed from an existing small business strategy framework, is proposed. This serves as a practical tool for developing CGM strategies and as a theoretical foundation for conducting research into the use of CGM. Copyright © 2014 John Wiley & Sons, Ltd.     

Environmental management decision-making in certified hotels

This paper analyses environmental decision-making against two axes, motivations and decision-making processes, to understand the reasons for pro-environmental behaviour by the managements of Spanish Eco-management and Audit Scheme (EMAS)-certified hotels. Mixed methods were used to study perceptions of EMAS and reasons for being certified, with current and lapsed EMAS-certified firms triangulated against expert interviews and documentary evidence. Four groups of hotels were differentiated: Strategic hotels (22%) (with high levels of integrated environmental management), Followers (48%), Greenwashers (11%) and Laggers (19%) (with low levels of integrated environmental management). Most hotels were found to be internally driven in their purpose and ad hoc in their decision-making, with limited understanding of externally driven benefits and motivation for more systematic management systems. This questions the success of EMAS as both a continuous improvement management and as a market-based regulation tool for hotels. Few hotels overall related high environmental standards to the possibilities of gaining market advantage: most wished to avoid legal challenges. The paper also illustrates the ways in which hotels opportunistically switch certification systems to get what they see as a better deal.     

Trade associations as corporate social responsibility actors: an institutional theory analysis of animal welfare in tourism

Most travel trade associations ignore their responsibility towards sustainable development broadly and animal welfare in particular. We analyse the development and implementation of animal welfare standards across 62 national and international associations using interviews, surveys, content analysis of published materials and websites. Only 21 associations mention sustainability in their websites, and only six refer to animal welfare. Of these, three associations have well-developed animal welfare activities (ABTA, ANVR and GSTC) [AQ1] and only one (lightly) monitors its members’ sustainability and animal welfare standards (ANVR). ABTA’s Animal Welfare Guidelines are the de facto industry standard, despite being designed for information (not auditing) purposes and lacking enforcement mechanisms. We examine jolts that prompt some associations to respond to external pressures and the institutional entrepreneurship process that triggers a process of reflexivity, theorisation and diffusion of a broader sense of responsibility. We examine the field-level conditions that lead to mostly mimetic pressures on large European tour operators (that compel them to act due to reputational risk management), with minimal normative pressures that would diffuse animal welfare practices across other association members. Change is not divergent, and the resources allocated to animal welfare protect trade associations’ members from criticism without binding them to implementation.     

Corporate reputation,satisfaction, delight,and loyalty towards rural lodging units in Portugal

This paper enriches the model of delight and satisfaction that Oliver et al. (1997) propose and Finn (2005) modifies, with a suggested causal relationship between disconfirmation and arousal and the introduction of two new variables: the lodging unit's corporate reputation and perceived quality. The modified model is applied to rural tourism accommodations in Portugal and validated using PLS (Partial Least Squares). The results suggest that the lodging unit's reputation is a more significant determinant of loyalty than satisfaction or even delight. This study further supports the conceptualization of customer delight and customer satisfaction as distinct constructs. Results may help managers of rural tourism accommodations to develop and implement more successful relationship marketing strategies.