Sunk costs,contestability and airline monopoly power

This paper examines the effects of sunk costs and potential competition on pricing behavior in monopoly airline markets. We find little evidence to support the proposition from contestable markets theory that the level of sunk costs influences pricing by monopolists. Rather, the results support the view, consistent with numerous game theoretic oligopoly models, that the costs and the price-cutting reputation of potential entrants influence incumbent behavior. These results suggest that contestability theory may not be robust. Even in the markets characterized by increasing returns to scale, the perfectly contestable market may not be a useful welfare standard.I am grateful to Richard Levin, Merton J. Peck, Sharon Oster, Paul MacAvoy, Dan Kaplan, Michael Levine, David Sappington, Andrea Shepard, and Diana Strassman for their advice. Participants at numerous workshops also made useful comments. Steven Davis, Tadas Osmolshis, and Maeve O'Higgins provided help with the data and technical assistance. I acknowledge financial support from Yale University and the Eno Foundation for Transportation. The usual disclaimer, of course, applies.     

Dark Secrets and Impression Management: Workplace Masks of People with Multiple Sclerosis (MS)

Goffman (1959) described dark secrets as crucial, often stigmatising, facts about an individual that are hidden from others. He also identified impression management as a means of controlling the assessments others make, with passing and covering being identified forms of impression management used by those wanting to hide stigma. Findings from an exploratory phenomenological study conducted in Sydney, Australia, revealed another form of impression management not previously identified: Masking. Masking was used by workers with Multiple Sclerosis (MS) to hide their MS-related experiences even though they had, in each of the cases shared, disclosed that they had MS at their place of work. Respondents presented several workplace “masks” to hide the impacts of having MS: (1) I’m Fine!; (2) I’m Happy!; and, (3) “I’m Better than the Others!”. Masking is suggested to be an unhelpful strategy, for the person doing it and their employer, but the alternative is also problematic. Further research into the phenomenon of masking is recommended.     

Risk and a changing environment for Antarctic tourism

This research note explores the issues of perceptions of risk and a changing environment for Antarctic tourism. A pilot study was undertaken aboard an Antarctic cruise ship in February 2008 with the purpose of examining the views of passengers about risk and environmental change in light of the recent sinking of the Explorer and the growing awareness of climate change effects in polar regions.     

Managing Employee Social Networking: Evolving Views from the National Labor Relations Board

With the development of social networking internet sites such as Myspace, Facebook, and Twitter, a new set of concerns has arisen for employers. A growing number of employers has asserted a right to regulate employee use of the internet and social networking sites despite the fact that such policies may be seen as an intrusion on workers’ privacy interests. This paper explores the conflict between the employees’ interest in internet use and employer efforts to regulate and control these activities. A number of National Labor Relations Board cases and supporting reports, as well as, arbitration decisions are examined in order to explore the critical issues that have emerged regarding employee use of social networking. Based on an analysis of the cases and literature, guidelines are provided for effective employer social networking policies. A high quality policy and an understanding of the changing standards are critical for successful management of employee social networking.     

A preliminary assessment of the function and conference service product at a UK stately home

The UK conference market is estimated to be worth £6 billion and is thought to be the fastest growing sector of the hotel industry. An increasing number of less conventional venues are aiming to attract corporate business, though most empirical research focuses on the hotel conference product. A UK stately home is the venue studied in this article. To identify possible areas for improvement, a telephone survey of customers was undertaken to assess the service and facilities. The high average ratings indicate that generally organisers have a favourable impression of the stately home. The research revealed significant differences in the average ratings given for the Main Hall and His Lordship's Apartment, the two rooms available for functions. Event category and organiser experience were not found to influence the ratings. Due to the relatively small sample size, only tentative observations are made about the trends which emerged from the analysis.     

Developing interviewing skills of accounting students on the Web – a case study approach

Increasing emphasis on the need for accounting graduates to develop personal skills has led to changes in many undergraduate programmes. This paper discusses one project at a Scottish university aimed at developing interviewing skills, using Web technology. Based on the theory of experiential learning, the project involves case study material delivered via a specially-written application which tracks students' questions and provides feedback on their interviewing styles. The interpersonal skills required in interviewing in a workplace context are analysed, and expressed in terms of the attributes of the questions used. The problem of providing feedback without excessive input from tutors is addressed and, finally, a method of evaluating the effectiveness of the learning experience is suggested.     

Hotel management style: a study of employee perceptions and preferences

This study investigates employee perceptions of, and preferences for, management practices within a five-star, medium-sized hotel. In particular, the study examines the hypothesis that hotel managers have become more consultative. Using longitudinal data over a 4-yr period, the study examines the perceptions of staff of the management practices and styles in the changing environment of one hotel. The findings suggest that, while staff prefer a decisive style of management, supervisors and department heads were perceived as being autocratic. In fact, in the 4 yr over which the data had been collected, the style of management had become less consultative and more autocratic. Implications for management are discussed, as are recommendations for future research.     

Using Information as a Basis for Segmentation and Relationship Marketing: A Longitudinal Case Study of a Leading Financial Services Firm

An important concern for service businesses is how to develop an appropriate segmentation and relationship marketing strategy that is tied to the value contribution of the customer base. This article presents a case study of the relationship marketing strategy for a division of a leading, worldwide financial services provider. The case firm segments customers into three tiers, using a framework similar to the one established by Berry and Parasuraman. Potential revenue from the customer is the primary segmentation variable used to assign customers to one of the three tiers, while the customer service response is tailored for each tier based upon customer information capabilities and needs. Although information is normally thought of as a supplemental service, rather than a core service, this case study shows how information is central to providing effective customer service and is a key to relationship marketing. The study also demonstrates how social and structural bonds can be used to refocus a customer's thinking from a cost perspective to a value perspective.     

A Meta‐analytic Integration and Test of Psychological Climate Dimensionality

There is no consensus as to what constructs should be considered to be psychological climate. Further, there is no clear taxonomy of psychological climate, although the climate literature suggests that psychological climate perceptions should form higher‐order (i.e., abstract, broad) dimensions. Two meta‐analyses have been conducted to evaluate higher‐order frameworks, but neither study tested the psychometric structure of their hypothesized models. The current meta‐analysis estimated the intercorrelations and criterion‐related validity of 23 psychological climate constructs in order to test the theoretical frameworks proposed by prior meta‐analyses. Confirmatory factor analyses supplemented by a method analogous to item‐to‐scale correlations indicated little empirical support for the a priori frameworks. Results suggest that that psychological climate may be parsimoniously represented by two dimensions. Task climate was most strongly indicated by supervisor goal setting, innovation, and organizational responsiveness. Relational climate was most strongly indicated by work group warmth and social rewards. A path analysis was estimated to test whether job satisfaction partially mediated the association between psychological climate and the outcomes of job performance, turnover intentions, and psychological well‐being. Results provide guidance to researchers and practitioners interested in measuring perceptions of the work environment. © 2014 Wiley Periodicals, Inc.     

In search of sustained competitive advantage: the impact of organizational culture,competitive strategy and human resource management practices on firm performance

We develop and test a dynamic model of co-specialized resources for competitive advantage. Using matched data from senior executives and human resource managers, we test the direct and interactive effects of high-performance human resource (HPHR) practices and organizational culture on firm performance. Although the HPHR practices were not an important influence on performance, our findings indicate that organizational culture can be a valuable resource for companies.