Refunds and collusion in service industries

This paper investigates industry-wide agreements on joint refund policies, and how they influence price competition. We compute the profit of fully-colluding, competing, and semicolluding service providers who offer refunds to those consumers who do not show up at the time of service. Our main findings are that both a monopoly serving all consumer types, and semicollusive service providers offer full refunds. In contrast, competing service providers offer only partial refunds. Finally, refund policies are investigated under moral hazard behavior.     

Ownership, Privacy and Monitoring in the Workplace: A Debate on Technology and Ethics

A panel held at the International Conference on Information Systems, December 5–7, 1993, addressed the importance and ethicality of several issues relating to ethics and information technology use. The substance of the debate and results of audience votes on the issues are presented in this paper as a means of initiating a broader debate on the issues, for it is with debate that we reach a group consensus on acceptable behavior and practice. With consensus, we can begin to develop codes and policies that are feasible and practical for ethical computer use.Specific dilemmas debated involved the issues of privacy and ownership, including the ethicality of using company resources for personal use and monitoring compliance to company policies about computer use. In general, we found little consensus about ethicality of any of the types of conduct, although we found a high degree of consensus that the debated issues were important and should continue to be discussed. The final question concerned policies and codes. While policies and codes were believed to be necessary, they were also perceived as ineffective. Several suggestions for practical action to enhance the efficacy of ethical codes are presented.     

Dematerializing Local Economies: A Case for ad hoc Governance

Part of the decentring process that has evolved with the relative empowerment of sub-national actors has permitted the growth of policy networks. This paper explores which type of governance structure is required to affect unemployment and growth rates when the economy comprises workers in dematerialized firms. Governance is found to influence the regional success of a 'weightless economy', but not in a manner that necessarily requires precise strata. Instead, as dematerialized firms are composed of potentially highly mobile workers, policies should be geared towards attracting (and keeping) mobile workers (not companies) and hence governance needs to be flexible and ad hoc to meet the locational tastes of such workers. Benefits will then spill over into the locale through increased aggregate demand for tangible goods, thereby reducing local unemployment and stimulating local growth.     

Partial outsourcing, monitoring cost, and market structure

Abstract.  We investigate firms' outsourcing decisions when production requires a large number of inputs. The novelty of our approach is that it provides a testable framework to characterize the equilibrium fraction of outsourced inputs. We demonstrate that intensified competition in a Cournot market for the final good typically enlarges the set of outsourced components relative to those produced in‐house. The proportions of outsourced inputs are found to be strategic substitutes independently of whether firms compete with respect to quantities or prices in the market for the final good. JEL classification: D20, L22     

Density estimation for randomly distributed circular objects

Summary Nearest neighbour methods traditionally used to estimate density of a sessile biological population treat individuals as points. The present paper suggests distance-based density estimators which treat individuals as circles with variable areas. Distribution of distance between a sample point and thek-th (k = 1, 2, 3, …) nearest circle is derived. Maximum likelihood estimator of density is obtained from a random sample of point tok-th order distances. Assuming a skewed distribution for the circle radius, moment estimators of density and mean circle area are derived.     

Testing a susceptibility threshold for risk promotion messages in the shark diving context

Abstract

This paper presents the results of two experiments designed to test a susceptibility threshold in the shark cage diving context, positing that persons who are high relative to low sensation-seekers are more likely to approach risks that are portrayed as scary and moderately probable. The results of study one provide evidence for the susceptibility threshold showing high sensation-seekers having greater behavioral intent to engage in risk behaviors when a message portrays a scary but only moderately probable risk. The second experiment finds high susceptibility messages result in more negative attitudes and behavioral intentions. Implications for risk message design and theory are addressed.     

Common ownership,institutional investors,and welfare

This study evaluates the effects of institutional investors' common ownership of firms competing in the same market. Overall, common ownership has two opposing effects: (a) it serves as a device for weakening market competition, and (b) it induces diversification, thereby reducing portfolio risk. We conduct a detailed welfare analysis within which the competition‐softening effects of an increased degree of common ownership is weighted against the associated diversification benefits.     

A network agent-based model of ethnocentrism and intergroup cooperation

Quality & Quantity - We present a network agent-based model of ethnocentrism and intergroup cooperation in which agents from two groups (majority and minority) change their communality (feeling...     

Ethical standards for computer professionals: A comparative analysis of four major codes

Professions have adopted ethical codes and codes of conduct. Physicians, lawyers, engineers, and other professionals have moral responsibilities. They know to whom they are responsible. Professionals in the data processing field, too, need to know that they have moral responsibilities and to whom they are responsible. This paper compares and evaluates the ethical codes of four major organizations of computer professionals in America. The analysis is done along the following obligations that every professional has: to society, to the employer, to clients, to colleagues, to the professional organization, and to the profession.Professionals in the information technology field have no single, agreed upon code of conduct. In the US alone there are four organizations promoting four different codes. While some of the behavioral precepts are similar, others are not. People who are members of more than one organization may wonder how they should act in certain circumstances. Furthermore, computer professionals are not provided with any guidance for cases of ethical conflicts.Flaws of the four codes and differences among them are discussed, examples of moral dilemmas are given, and points for improvement are suggested.Effy Oz is an assistant professor of Management Information Systems in the School of Business Administration at Wayne State University, and the coordinator of the MIS program. He has published articles inInformation Executive, OMEGA, Decision Sciences, Information & Management, Journal of Systems Management, andMiS Quarterly.