Bundling and quality assurance

With imperfect private monitoring, a firm selling two experience goods can increase both producer and consumer surplus by bundling. Bundling constrains consumers to buy two products, making consumers better informed and ensuring that they use tougher punishment strategies. Both increased monitoring and increased punishment benefit other consumers, so bundling overcomes a free‐rider problem. The social value of bundling is even larger if consumers cannot attribute a negative signal to the specific product that generated it, or if one of the two goods is a durable and the other is a complementary nondurable. Our results are robust to mixed bundling.     

Publication outlets for healthcare financial research: A study of journal quality perceptions

Publications in high quality journals often serve to indicate research productivity. However, many top‐rated journals infrequently publish cross‐disciplinary topics such as healthcare financial management (HFM). So, academic administrators and HFM researchers find it challenging to evaluate the quality of the work. Journals open to publishing HFM articles are distributed across multiple disciplines. Each field has its own journal rankings typically focused on their primary subject area. Starting with prior literature, we form a cross‐disciplinary journal list and solicit preliminary input from editors, associated editors, reviewers, and authors. We then solicit confirmatory ranking input from independent researchers in a holdout sample.     

The Structural Origins of Territorial Stigma: Water and Racial Politics in Metropolitan Detroit, 1950s–2010s

This article develops the concept of territorial stigma by analyzing how it can be cultivated at the level of political institutions across administrative divides. I consider the case of Detroit's regional water department, which until 2016 was owned and operated by the city and served over 120 suburban regional municipalities. I start by examining the cooperative city–suburban water system expansion in the 1950s and then analyze the rise of Detroit's first black‐led administration in 1974, after which the water authority became a key regional institution that provided an opportunity for white suburban leaders to organize against the city. I find that suburban leaders advanced their immediate goal of mitigating rate hikes by declaring the city to be greedy and inept, instead of acknowledging structural conditions that increased operational costs. This had the effect of reproducing racialized stereotypes at the political level, which had enduring effects. The argument builds on the existing literature on territorial stigma by (1) identifying state institutions as sites for the propagation of stigma and (2) considering stigmatized places in relation to their non‐stigmatized neighbors. The analysis integrates material‐structural and cultural‐symbolic factors in order to understand the perpetuation of regional urban inequalities.     

What,When, and with Whom? Investigating Expatriate Reentry Training with a Proximal Approach

While reentry transition has long been regarded as one of the most challenging phases of an expatriate assignment cycle, reentry training has received little scholarly attention. Using a qualitative research design based on interviews with 31 training providers, we bring the issue of reentry training into focus. Our findings shed light on three components of training design and execution: content, timing, and participant format. Our comparison of actual reentry training practice with an ideal, theory‐driven design revealed numerous inconsistencies. Further investigation of these inconsistencies led us to theorize how training practices may predominantly be shaped by contextual factors. Our findings accentuate the challenges of HRM practices more broadly, showing how practice design can be driven by logistical matters and organizational interests, rather than by evidence‐based precepts. © 2014 Wiley Periodicals, Inc.     

Facing a Biased Adviser While Choosing a Retirement Plan: The Impact of Financial Literacy and Fair Disclosure

Buying a retirement saving plan in Israel involves meeting with an agent whose interests may differ from those of his or her customers. The aim of the present study was to explore the effect of the advice given by the agent, along with that of two further factors: a fair disclosure statement regarding the agent's conflict of interest, and the customer's degree of financial literacy. Two experiments conducted among undergraduate students in Israel showed that customers mostly follow the agent's recommendation, even against their best interest, and despite the presence of a fair disclosure statement. Only participants with high financial literacy, who received a disclosure statement, did examine the alternatives closely and rejected the advice when the recommendation was damaging. We also ruled out the existence of a negative psychological reactance response to a disclosure statement that would work to the detriment of financially literate participants.     

Investigating the impact of endogeneity on inefficiency estimates in the application of stochastic frontier analysis to nursing homes

This paper examines the impact of an endogenous cost function variable on the inefficiency estimates generated by stochastic frontier analysis (SFA). The specific variable of interest in this application is endogenous quality in nursing homes. We simulate a dataset based on the characteristics of for-profit nursing homes in California, which we use to assess the impact on SFA-generated inefficiency estimates of an endogenous regressor under a variety of scenarios, including variations in the strength and direction of the endogeneity and whether the correlation is with the random noise or the inefficiency residual component of the error term. We compare each of these cases when quality is included and excluded from the cost equation. We provide evidence of the impact of endogeneity on inefficiency estimates yielded by SFA under these various scenarios and when the endogenous regressor is included and excluded from the model.     

Networks,Internationalization & Policy

This is the introduction to this special issue of Small Business Economics, dedicated to networks, opportunity, internationalization and policy. As the drivers of globalization are removing barriers, which traditionally segmented the competitive environments of small and large firms, firms of all sizes are joining international networks. Former competitors are now working together and this symbiosis is enhancing competitiveness. Consequently, networking is giving rise to unprecedented opportunities, facilitating internationalization. Simultaneously, new realities are creating the need for new policies.     

The competitive nature of the nursing home industry: price mark ups and demand elasticities

Nursing home markets are likely to deviate from a competitive structure because of limitations on entry imposed by Certificate of Need (CON) regulations and the potential for product differentiation along such attributes as location, religious affiliation and quality. This paper investigates the structure of nursing home markets in New York State by calculating price mark ups and residual private pay demand elasticities. It shows that the residual demand elasticity is bound by estimates based on price mark ups above marginal costs and above Medicaid rates. This approach allows estimation of demand elasticities in all markets, whether or not CON regulations constrain bed supply. Mean price elasticities (in absolute value) calculated for nursing homes in New York State in 1991 ranged from 3.46 to 3.85.