The product elimination function

Historically, major consideration given to product management has focused on research and development or the introductory stage of the product life cycle. The authors present an empirical study delineating the variables to be considered in the product elimination process. More specifically, the elimination process is evaluated under a situation of poor product performance despite a generally viable market. The basic objectives of the study were: to determine the significant variables in the product elimination process of the Small Appliance Industry; to determine the relative importance of the variables; to examine the interaction among variables. The data obtained through personal structured questionnaire interviews were analyzed and provided a ranking of twenty-six variables relevant to the elimination process. Moreover, the Johnson's Hierarchical Clustering Schemes was applied to determine the interaction among variables. The results indicate that profitability and financial variables are most significant in the elimination decision-process. Second, the primary clusters of importance are concerned with market share, market growth rate, consumer awareness, and competitive action.     

Irrelevance of the soft budget constraint for the shortage phenomenon

Kornai's thesis that shortage results from demand expansions bred by the soft budget constraint, derives from his implicit assumption that price regimes of input and output firms are different. Since any firm is both an input and an output firm, which discards the assumption as logically untenable, excess demand can only turn up because of lower than contracted inputs of labor and management that are not offset by an adequate downward adjustment of earnings. Expansions of demand that appear to be autonomous, are incited by uncertain deliveries of inputs, that is, by inefficiency (of output firms) as well. A by far the largest part of excess demand can be explained by state preferences for fast growth. As planners are more successful in generating investment, and the ensuing consumer, demand than in expanding production, shortage is inevitable regardless of the character of the firms' budget constraints.     

On recalls, layoffs, variable hours, and labor adjustment costs

The paper analyzes the employment policy of a firm that can vary both hours and the level of employment. The analysis differs from previous work in the adjustment cost literature in that the firm is able to change its employment not only through hires, layoffs, and quits, but also by recalls of employees who were previously laid off. Thus, we introduce the possibility of the firm inventorying the labor input. It is shown that this labor inventory potential is necessary if the firm is to ever lay off workers. Further, it is demonstrated that linear rather than strictly convex adjustment costs are then required if the firm is to always recall employees who were previously laid off prior to hiring new workers.     

Spillover effects of human service facilities in a racially segmented housing market

Previous studies of human service facility spillovers on residential property values have been inconclusive, and have failed to take into account the effects of racial segmentation of housing markets. Likewise, studies of racial discrimination in urban housing markets and price differentials between white and nonwhite areas of the city have failed to consider the impacts of service facilities on prices. This study develops an hedonic price model of housing services in a racially segmented housing market, which considers a variety of human service facilities and their spillover effects. Model results for Oakland, California in 1976 indicate that facilities significantly affect housing prices both positively and negatively, and that these effects vary by racial submarket. Implications of these findings for the interpretation of past discrimination studies, facility impact studies, and social policy are considered.     

Air pollution-mortality models: A demonstration of the effects of random measurement error

Errors of measurement have long been recognized as a chronic problem in statistical analysis. Although there is a vast statistical literature of multiple regression models estimating the air pollution-mortality relationship, this problem has been largely ignored. It is well known that pollution measures contain error, but the consequences of this error for regression estimates is not known. We use Lave and Seskin's air pollution model to demonstrate the consequences of random measurement error. We assume a range of 0% to 50% of the variance of the pollution measures is due to error. We find large differences in the estimated effects on mortality of the pollution variables as well as the other explanatory variables once this measurement error is taken into account. These results cast doubt on the usual regression estimates of the mortality effects of air pollution. More generally our results demonstrate the consequences of random measurement error in the explanatory variable of a multiple regression analysis and the misleading conclusions that may result in policy research if this error is ignored.     

On bivariate generalized binomial and negative binomial distributions

The present paper deals with two types of generalized general binomial (binomial or negative binomial) distributions: (i) a univariate general binomial generalized by a bivariate distribution and (ii) a bivariate general binomial generalized by two independent univariate distributions. The probabilities, moments, conditional distributions and regression functions for these distributions are obtained in terms of bipartitional polynomials. Moreover recurrence relations for the probabilities and moments, independent of the bipartitional polynomials, are given. Finally these general results are applied to the (i) Binomial-Bivariate Poisson and (ii) Bivariate Binomial-Poissons distributions.     

Stability and agreement criteria for the termination of Delphi studies

This paper addresses the question of the methodology of testing for stability between successive Delphi rounds and the necessity of doing so prior to the analysis of the level or type of consensus. Following a discussion of a hierarchical set of a criteria for determining the termination of such studies, the paper reviews some of the more common treatments of the subject in the literature. It is finally proposed that a χ² test be used to test the stability of responses between rounds. The method is demonstrated by a numerical example.