Contingent payments in selection contests

The early literature on research contests stressed the advantages of a fixed prize in inspiring R&D effort. More recently the focus has moved towards endogenizing the rewards to research activity in these tournament settings, since this can induce extra effort or enhance the surplus of the buyer. We focus on a research contest as a means of selecting a partner for an R&D enterprise, in an informational setting in which the established providers of R&D services know more about each others’ relative capabilities than does the buyer/sponsor. An alternative use of our model is in choosing between prospective patentees where the Patent Trading Office has less information on the patents than the competitors. This asymmetry creates a source of inefficiency if a rank order contest is used as a selection device; we show how the contest can be modified to improve selection efficiency, while maintaining its simplicity (as only ordinal information is required). The modification that we suggest involves endogenizing the prizes that are awarded contingent upon whether a contestant wins or loses the contest. Furthermore, the payment system and the selection mechanism are detail-free. This paper is part of the project “The Knowledge-Based Society” sponsored by the Research Council of Norway (project 172603/V10).     

Gender differences within early stage and established small enterprises: An exploratory study

This paper examines 2 years of data from GEM Canada in order to develop new insights into the factors that contribute to the performance outcomes of female enterprises and how these factors are affected by the firm’s stage of development. The analysis encompasses both personal and organizational characteristics and assesses their association with selected performance measures at the early stage as well as at the established phase of development. The findings indicate that the greater propensity of men to pursue business growth and earnings can be attributed to marital status (live with a partner) and the expected depth of the ownership team. Moreover, the performance outcomes for male entrepreneurs are influenced by a relatively wide range of variables, with business demographics being more prominent than for the female enterprises. For both genders, the mix of relevant underlying factors varies as the venture progresses along the ‘nascent-new-established’ continuum.     

John R. Commons and Government as Employer of Last Resort: Three Paths to a Progressive Right to Work

Abstract:

Today in the United States, a number of congressional Democrats endorse proposals that would establish a job guarantee for all Americans seeking work. Arguments for such a policy can be traced back at least to the work of John R. Commons, one of the first institutional economists. This article demonstrates that there are actually three arguments in Commons’s scholarship that provide a case for government to hire the unemployed by serving as employer of last resort. These arguments, each highlighted at a different point in Commons’s career, can be viewed in turn as legal, financial, and historical paths to public provision of work for the jobless—government employment that Commons considered part of “the right to work.” The article traces each path, highlighting insight that remains relevant and calling for greater attention to Common’s writings as a way to reclaim the right to work as a progressive cause.     

Inventory accuracy in 60 days!

Despite great advances in manufacturing technology and management science, thousands of organizations still don't have a handle on basic inventory accuracy. Many companies don't even measure it properly, or at all, and lack corrective action programs to improve it. This article offers an approach that has proven successful a number of times, when companies were quite serious about making improvements. Not only can it be implemented, but also it can likely be implemented within 60 days per area, if properly managed. The hardest part is selling people on the need to improve and then keeping them motivated. The net cost of such a program? Probably less than nothing, since the benefits gained usually far exceed the costs. Improved inventory accuracy can aid in enhancing customer service, determining purchasing and manufacturing priorities, reducing operating costs, and increasing the accuracy of financial records. This article also addresses the gap in contemporary literature regarding accuracy program features for repetitive, JIT, cellular, and process- and project-oriented environments.     

The value of tax benefits and the cost of liquidating versus selling failed thrift institutions

This paper examines the 205 insolvent thrifts that were resolved in 1988 and assesses the cost savings obtained by selling 179 of the institutions through assisted acquisitions rather than liquidating them. It is hypothesized that the cost savings were determined by factors related both to the future viability of the acquired institution and the particulars of the deal arranged by the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation. The added value by selling a thrift is determined primarily by the level of core deposits obtained by the acquired thrift. However, the branch structure and purchased mortgage-servicing rights should also add franchise value to the firm. In addition to these factors, the analysis accounts for the tax benefits and other regulator forbearances associated with the deals. Other characteristics of the deals are also considered. It is found that core deposits, tax benefits, purchased mortgage-servicing rights, average branch size, and type of acquirer, as well as some other factors, were significant determinants of the cost savings obtained through selling an institution rather than liquidating it.