Recent Developments at the CMA: 2017–2018

We describe three interesting cases that the UK Competition and Markets Authority (CMA) has dealt with over the past year: first, we discuss the merger of two online food ordering platforms—Just Eat and Hungryhouse—which required an assessment of competition in the presence of indirect network effects. Second, we discuss the vertical merger of a grocery retailer and wholesaler—Tesco and Booker—which posed the challenge of how to assess a firm’s incentives to foreclose its rivals when there are thousands of local markets. Finally, we discuss Open Banking, which lies at the heart of the package of remedies that came out of the CMA’s market investigation into personal banking, and sought to tackle issues of low customer engagement.     

English educational tourism

Public sector attractions in the UK are becoming more consumer orientated and special attention is being paid to the needs of children. Chris Cooper and John Latham, Lecturers in the Department of Management Studies for Tourism and Hotel Industries at the University of Surrey, UK, have carried out a survey of educational visits to tourist attractions in England leading to more detailed research aimed at determining various parameters of the English educational market.     

Consumer vulnerability and complaint handling: Challenges,opportunities and dispute system design

Effectively designed complaint handling systems play a key role in enabling vulnerable consumers to complain and obtain redress. This article examines current research into consumer vulnerability, highlighting its multidimensional and expansive nature. Contemporary understandings of consumer vulnerability recognize that the interaction between a wide range of market and consumer characteristics can combine to place any individual at risk of vulnerability. While this broad definition of consumer vulnerability reflects the complex reality of consumers’ experiences, it poses a key challenge for designers of complaint handling systems: how can they identify and respond to an issue which can potentially affect everyone? Drawing on current research and practice in the United Kingdom and Australia, the article analyses the impact of consumer vulnerability on third party dispute resolution schemes and considers the role these complaint handling organizations can play in supporting their complainants. Third party complaint handling organizations, including a range of Alternative Dispute Resolution services such as ombudsman organizations, can play a key role in increasing access to justice for vulnerable consumer groups and provide specific assistance for individual complainants during the process. It is an opportune time to review whether the needs of consumers at risk of vulnerability are being met within complaint processes and the extent to which third party complaint handlers support those who are most vulnerable to seek redress. Empowering vulnerable consumers to complain presents specific challenges. The article discusses the application of a new model of consumer dispute system design to show how complaint handling organizations can meet the needs of the most vulnerable consumers throughout the process.     

Labor flexibility and firm performance

The aim of this paper is to add to the labor flexibility debate by exploring the relationship between different forms of flexible working practices and the performance of the firm. Although there is a strong argument that labor flexibility can lead to greater financial success through the reduction in labor costs and the ability to use labor resources more efficiently, little empirical evidence has been provided to demonstrate the existence of such a relationship. This paper reviews the existing literature, puts forward a number of research propositions, and tests them by using data drawn from the Cranet-E International Survey of Strategic Human Resource Management. Only one form of numerical flexibility is found to have a positive relationship with firm performance. Proposals for further research are suggested.     

Make and Use Approaches to Regional and Interregional Accounts and Models

Institutional, or sector-by-sector input–output tables have traditionally been used in regional and interregional modelling. This paper examines the origins of this tradition and argues instead, both theoretically and empirically, for the integration of make and use submodels within models of production, demand and interregional trade, outlining the manner in which they can be integrated. Further, it is argued that structural rather than reduced-form models represent a sounder theoretical base. Finally, a Danish interregional model (LINE) based on a social accounting matrix framework that employs these principles is presented. The paper also deals with the issue of data construction at the regional and interregional levels, based on the make and use approach. It is argued that when data are constructed at a low level of sectoral and spatial aggregation under accounting consistency constraints, data quality and validity are high.     

Management models and differential agency challenges arising in Australian multi-titled tourism accommodation properties

This paper reports the interview findings of a study designed to appraise differential agency challenges arising between unit owners and resident managers in three distinct types of strata titled tourism accommodation (STTA) operation. The three distinct contexts of STTA management delivery investigated are: 1) management service provision by small independent owner-operators in a single STTA apartment complex, 2) management service provision in strata titled hotels, and 3) management service provision by organizations that manage multiple STTA apartment complexes. Using the four dimensional agency theoretical framework developed by Lambert (2001), it has been found that the potential for agency challenges appear to be greatest in the context of an STTA complex managed by a small independent owner-operator.     

Defining an emerging tourism industry sub-sector: Who are the strata titled tourism accommodation stakeholders?

This study represents the first providing a definition of the strata titled tourism accommodation (STTA) sub-sector of the tourism industry. This definition is achieved by identifying the stakeholders that collectively comprise the sub-sector. There is a paucity of prior research concerned with this increasingly significant form of tourism accommodation (Pizam, 2006). This is despite the significance of accommodation to the tourism economy (Cooper et al., 1998) and STTA's rapid growth (Guilding et al., 2005). Stakeholder theory has been drawn upon to explore, identify and classify the key players involved in the Australian STTA sector. The study also provides a commentary on the different STTA roles played by the stakeholders and the nature and extent of their perceived engagement with the tourism industry.     

Discipline,Governmentality and ‘Developmental Patrimonialism’: Insights from Rwanda's Pyrethrum Sector

An ongoing academic debate examines the implications of ‘developmental patrimonialism’ for African citizens. Rwanda is a key case study in this debate, with proponents of developmental patrimonialism and ‘party capitalism’ arguing that companies owned by the ruling party or the military play positive roles in economic development. This debate often focuses on macro‐level, elite politics. This paper instead uses a Foucauldian lens to examine the micro‐level politics of pyrethrum production in Rwanda, which is managed by a military‐owned company. The company utilizes incentive‐based governmental strategies, in line with state discourses, in addition to punitive, disciplinary regimes. The paper demonstrates that state agricultural strategies depend on multiple factors, including multi‐scale political tensions between the ruling party's desire for control and its discourse of ‘entrepreneurship’.