Airbus versus Boeing revisited: international competition in the aircraft market

This paper examines international competition in the commercial aircraft industry. We estimate a discrete choice, differentiated products demand system for wide-body aircraft and examine the Airbus-Boeing rivalry under various assumptions on firm conduct. We then use this structure to evaluate two trade disputes between the United States and European Union. Our results suggest that aircraft prices increased by about 3.7% after the 1992 US-EU agreement on trade in civil aircraft that limits subsidies. This price hike is consistent with a 5% increase in firms' marginal costs after the subsidy cuts. We also simulate the impact of the future entry of the Airbus A-380 super-jumbo aircraft on the demand for other wide-bodied aircraft, notably the Boeing 747. We find that the A-380 could reduce the market share of the 747 by up to 14.8 percentage points in the long-range wide-body market segment (depending upon the discounts offered on the A-380), but would reduce the market for Airbus's existing wide-bodies by an even greater margin.     

Self-Employment and Job Satisfaction: Investigating the Role of Self-Efficacy, Depression, and Seniority

Are self‐employed workers more satisfied with their jobs compared to wage and salary workers? Using The National Survey of Families and Households: Wave I, 1987–1988, and Wave II 1992–1994 several expectations are evaluated in this article. First, self‐employed persons should enjoy higher job satisfaction than others. Second, a portion of the association between job satisfaction and self‐employment should be explained by higher levels of self‐efficacy and by lower levels of depression among the self‐employed compared to others. Third, self‐employment veterans are a select group and should be different systematically from self‐employment newcomers with respect to reported job satisfaction. Findings offer support for the first and second arguments above but not the third. Post‐hoc analysis suggests that among the newly self‐employed, the association between job satisfaction and self‐employment depends on both the quantity and quality of time invested in the business. Implications of these findings and directions for further research are discussed.     

Self-Ratings and Expectations of the U.S. President, Ideal Physicians, and Ideal Automechanic

Relationships between self-ratings and expectations of an ideal U.S. president, were studied in 43 men drawn from a university setting in the eastern coast of the U.S.A. The men first rated themselves on personality variables, life choices (agentic and communal), peacefulness, spirituality, and morality. Then they were presented with a vignette requesting that they describe an ideal U.S. president on inventories measuring personality variables, life choices, peacefulness, spirituality, and morality. For the rating of the ideal U.S. president, they also were asked to respond to a 20 item questionnaire that was a composite of several factors on organization and leadership, morality, spirituality, and peacefulness. The respondents belonged to one of seven different political persuasions, similar in some ways to different cultures. Self-ratings of the men and expectations of the president were highly correlated for extraversion, openness, trait morality, agentic and communal life choices. However, no significant correlations were found between the self-ratings and expectations of the president for neuroticism, agreeableness, conscientiousness, peacefulness, nor state morality. The men were also presented with vignettes for the ideal physician and ideal automechanic and asked to rate each of them on the inventory items. Overall, the U.S. President was rated as more neurotic and immoral in terms of ingrained ideas of right and wrong, but also as more caring for others, transcendent, seeking goodness and truth, forgiving, cooperative, and most concerned with matters of justice and mercy, and more concerned with both agentic (power-seeking) and communal (community-minded) life choices than were either the ideal physician or ideal automechanic. The ideal physician was rated as highest in extra-version, openness, agreeableness, conscientiousness, and overall peacefulness, and lowest in neuroticism. The ideal automechanic was rated as highest in state or situational immorality, and lowest in both agentic (power-seeking, business-mindedness) and communal (community-mindedness) life choices, and also lowest in caring for others well-being, transcendence, seeking goodness and truth, forgiveness and cooperation, being concerned with justice and mercy, overall expectations, overall spirituality, and overall organization and leadership. In general, the self-ratings were significantly related to ratings/expectations, of the U.S. President, ideal physician, and ideal automechanic. The men seemed to identify more with the automechanic than with the present or physician.     

When Responsibility Can't Do It

Is being responsible good enough? Stone (1975) argued that we need corporate moral responsibility because neither law nor market is adequate to forestall harmful effects of business activities. However, it is not possible for businesses to become responsible for all forms of foreseeable, preventable harm that they produce. This is illustrated here by cases from insurance, television programming, automobiles and weapons production. Reflection on these examples leads to the formulation of a new conception of unintended harms as moral externalities of business activities. Although one might argue that these (negative) moral external effects are outweighed by the desirable end products of business activities, three reasons not to accept the results of such a “moral subtraction”(or double effect) argument are presented. Instead, the article concludes by offering four techniques for a qualitative, ethical analysis of produced artefacts and their consequences; intended not to displace but to supplement the study of moral responsibility in business.     

Corporate Social Responsibility Starts at University

The author addresses the question of how to use value-learning processes to integrate corporate social responsibility (CSR) in organizations as an interesting challenge in (higher) education. Two strategies have been proposed for the issue of CSR: a compliance strategy and a cultural change strategy (Karssing, 2001). This article focuses on the ethical and philosophical presuppositions of these different approaches. The incorporation of CSR in organizations cannot be accomplished by means of a compliance strategy only. Rather, it needs to be supplemented by a strategy aimed at stimulating a transformation process on the corporate culture level. The perspective of change through dialogue is proposed as a means of innovating the curriculum and the primary processes of student education. This organizational change perspective is demonstrated by describing how (ethical) reflective aspects are integrated in the curriculum of the Free University of Amsterdam. An additional case study on organizational value learning is presented to illustrate the thesis that CSR presupposes that university is an adequate context where life-long learning begins.     

Post-Communist Consumer Ethics: The Case of Romania

In this paper we theorize that cognitive ethical orientations play an influential role in the beliefs of consumers when faced with different ranges of moral dilemmas. We examine this proposition in transitional Eastern Europe and results from a sample of 210 Romanian consumers suggest that Romanians are faced with a moral situation where low levels of Machiavellianism and high levels of idealism appear to relate to a higher ethical concern about passively benefiting at the expense of others.     

A note on price futures versus revenue futures contracts

Here we consider the hedging roles of a price futures contract versus a revenue futures contract. In the absence of idiosyncratic output risk, the revenue contract almost always dominates the price contract. Idiosyncratic output risk provides conditions under which the price contract should dominate. When production risk is largely idiosyncratic, a producer with an anticipated long actuals position might combine a long revenue futures position with a short price futures position. © 2004 Wiley Periodicals, Inc. Jrl Fut Mark 24:503–512, 2004     

SUPPLY CHAIN INFORMATION SHARING IN A VENDOR MANAGED INVENTORY PARTNERSHIP

Vendor Managed Inventory (VMI) involves the vendor making the replenishment decision for products supplied to a customer based on various inventory and supply chain policies. Information sharing between supply chain members is required in VMI. Sometimes VMI decisions are delayed and/or the information shared is inaccurate. This research examines the effects of information delay and accuracy, and the sharing of sales and forecast information in a VMI environment facing stationary and nonstationary demand. The simulation experiments show the impact of information delay, information inaccuracy, and information sharing on a variety of performance measures, including inventory levels and fill rates.