Contracting With Wealth-Constrained Agents

We examine how a project owner optimally selects a project operator and motivates him to deliver an essential noncontractible input (e.g., effort) when potential operators are privately informed about their limited wealth. Truthful revelation of wealth is induced by promising a higher probability of operation and, if necessary, a greater share of realized profit the larger the nonrefundable bond that a potential operator posts. The project owner benefits when total wealth is widely dispersed among potential operators. Under plausible conditions, limited knowledge of wealth is not constraining for the project owner.     

Knowledge transformation in project networks: A speech act level cross‐boundary analysis

Researchers stress the importance of understanding knowledge transformation in projects. To explore how knowledge is transformed across organizational and specialization boundaries in project networks, we observed 22 knowledge transformation cases in two project networks. We found that new knowledge was created across specialization boundaries and that knowledge was altered across organizational boundaries. When both organizational and specialization boundaries were crossed, new knowledge was created. From these findings, we developed a set of propositions and formulated these into a model of knowledge transformation in project networks. This research contributes to a better understanding of knowledge transformation processes and outcomes in project networks.     

The Telecommunications Act at three years: an economic evaluation of its implementation by the Federal Communications Commission

The competitive free-for-all that Congress envisioned in the 1996 Telecommunications Act has for the most part not appeared. The Act calls for two forms of regulatorily-assisted entry into local markets: lease of network elements and resale. The FCC has decreed that the charges for those elements and the resale discounts must emulate the costs of an ideally-efficient firm. This standard is in fact not efficient, and the FCC’s attempt to jump-start the entry of competitors in this way has short-circuited the competitive process itself and jeopardized achievement of the goals of the Act.     

The Relationship between Multiple Choice and Essay Response Questions in Assessing Economics Understanding

Efficiency considerations have led to increased use of multiple-choice questions to assess economics understanding at the secondary and tertiary levels throughout Australia. A multiple-choice test would suffice if multiple-choice and essay questions measure the same dimensions of knowledge, as suggested by least squares estimation of the relationship between these two forms of testing. We show a simultaneous equation bias inherent in least squares estimation of the relationship between these two forms. A two-stage least squares estimation reveals no relationship, implying that these testing forms measure different dimensions of knowledge. Thus, a single form of testing economics knowledge must be avoided.     

REVERSE LOGISTICS: THE RELATIONSHIP BETWEEN RESOURCE COMMITMENT AND PROGRAM PERFORMANCE

In response to increasing volumes of returned products, firms are establishing programs to guide the reversal of flows in the supply chain, i.e., reverse logistics. With reverse logistics programs firms seek cost savings and efficiencies related to reclamation, redistribution, and disposal of products returned “upstream” to the retailer or manufacturer. This paper reports on a recent survey of electronics catalog retailers regarding reverse logistics program involvement. In addition to creating a profile of current reverse logistics activities in an industry characterized by high volumes of returns, the research also examines the relationship between investment in reverse logistics related resources and reverse logistics program performance.     

The role of taxonomic and goal‐derived product categorization in,within, and across category judgments

Consumers can face two types of judgment and choice situations: They may be considering products that are classified in a single product category, or products that may belong to several different product categories. This article compares these within‐ and across‐category judgments on the basis of the distinction between taxonomic and goal‐derived categorization. The first study examines how products that belong to taxonomic and goal‐derived categories are represented in memory. The findings support the view that taxonomic categories differ from goal‐derived categories in terms of the ease with which the features shared between members of the category are accessible and the type of features that are used to represent the members. In turn, these differences influence consumer beliefs, judgments, and choice sets when consumers make within‐ and across‐category product comparisons. A second study examines how consumers' familiarity with consumption situations influences the construction of choice sets. Results indicate that as familiarity with consumption situations increases, consumers construct more narrowly defined, within‐category choice sets, whereas in less‐familiar situations consumers construct broader, across‐category choice sets. The implication of these findings on marketing action is discussed. © 2001 John Wiley & Sons, Inc.     

Discrimination and Disidentification: The Fair-Start Defense of Affirmative Action

The Fair-Start Defense justifies affirmative action preferences as a response to harms caused by race- and sex-based discrimination. Rather than base a justification for preferences on the traditional appeal to self-esteem, I argue they are justified in virtue of the effects institutional discrimination has on the goals and aspirations of its victims. In particular, I argue that institutional discrimination puts women and blacks at an unfair competitive disadvantage by causing academic disidentification. Affirmative action is justified as a means of negating this unfair disadvantage.