Hard Bargains and Lost Opportunities

A long tradition in economics assumes that any potential gains from trade will be exploited. This emphasis on efficiency clashes with the possibility that hard bargaining over the division of the surplus may cause some potential deals to be lost. We examine an Outside Option Game designed to study the tension between maximising the size of the surplus and bargaining over the division of this surplus among those who contributed to its creation. An experimental study confirms that subjects often fail to achieve efficient outcomes. A theoretical model accounts for this behaviour in terms of an equilibrium achieved in an imperfect world     

Are urban land tenure regulations in Namibia the solution or the problem?

Land tenure in Namibia is regulated by a variety of Acts, some of which date back to as far as 1937, and some of which are yet to be approved by Cabinet. This variety of Acts makes it difficult to evaluate the performance of land administration as a whole, and the appropriateness of coercive instruments with regards to urban land tenure in particular. In this article we evaluate how urban land tenure regularization practices are conducted in Namibia, and to compare new formal procedures, designed to address problems of efficiency and efficacy, to older existing procedures, supposedly not efficient or effective. This evaluation uses a theoretical framework of Pritchett and Woolcock [Pritchett, L., Woolcock, M., 2004. Solutions when the solution is the problem: arraying the disarray in development. World Development 32 (2), 191–212], which deals with public service delivery and transaction-intensive services. Applying this framework for a comparative analysis of 5 different land subdivision practices – each relying on a different land-related act – we conclude that the degree of regulation and regularization is perhaps not so much a solution for urban land tenure problems but more of a problem in itself.     

Addressing Negative Willingness to Pay in Dichotomous Choice Contingent Valuation

This paper has four purposes. First, we outline the controversy surroundingthe issue of negative willingness to pay (WTP)in contingent valuation (CV) studies. Second,we use Monte Carlo simulation to examine theperformance of alternative distributionalassumptions in estimating WTP in the presenceof varying proportions of the populationholding negative WTP values. We focus ondichotomous choice CV (DC-CV), where negativeWTP values may be especially difficult todetect. Third, we extend the simulation toinvestigate the performance of the mixturemodels that have recently been proposed forhandling/identifying non-positive WTP values. Fourth, we extend the simulation to investigatethe performance of the nonparametric lowerbound Turnbull approach. Results indicate thatthe relative performance of the DC-CV modelingalternatives evaluated here, which assumepositive WTP, varies across the simulationsetting (e.g., proportion of negative WTP); butnone can be said to reasonably ``solve' theproblem ex post. This underscores theimportance of ex ante efforts to identify ifnegative WTP is likely to be prominent in agiven valuation setting. In such cases,appropriately handling negative WTP must beaddressed through ex ante survey design andmodeling choices that allow negative WTP.     

Perceptions of Industrial Design: The “Means” and the “Ends”

It is widely accepted that industrial design can play an important role in the development of innovative products, but integrating design‐thinking into new product development (NPD) is a challenge. This is because industrial designers have very different perspectives and goals than the other members of the NPD team, and this can lead to tensions. It has been postulated that the communications between NPD managers and industrial designers are made more difficult because each group uses very different language. This research made the first empirical investigation of the language used by designers and managers in describing “good” and “poor” industrial design. In‐depth interviews were conducted with a sample of 19 managers and industrial designers at five leading companies. Multiple sources of data were utilized, including the repertory grid technique to elicit the key attributes of design, from the perspective of managers and designers. Using a robust, systematic coding approach to maximize the validity and reliability of qualitative data analysis, it was established that managers and industrial designers do not use a completely different vocabulary as previously supposed. Rather, it was found that managers and industrial designers use some common terms augmented by additional terms that are specific to each group: managers are commercially orientated in the “ends” they want to achieve and designers perceive more antecedents (“means”) necessary to achieve their “ends”—iconic design. This research led to a grounded conceptual model of the role of design, as perceived by managers and industrial designers. The implications of the results achieved are wide: they indicate how managers and designers can interact more productively during NPD; they highlight the need for more research on the language of designers and managers; and they point to issues that need to be covered in the education of industrial designers. Finally, this work suggests how managers and designers can engage in a more fruitful dialogue that will help to make NPD more productive.     

Psychological contract breach and counterproductive workplace behaviors: testing moderating effect of attribution style and power distance

In this study, we examined the relationship between psychological contract breach (PCB) and counterproductive workplace behaviors (CWBs). We also explored two personal factors, namely casual attribution styles and power distance, in moderating the PCB–CWB linkage. One hundred and thirty-one full-time Chinese employees in Macao were recruited. Results showed that PCB was positively correlated with CWB. Furthermore, this relationship was moderated by external attribution style and power distance. In particular, employees who attributed the contract breach more to disruption and endorsed higher on power distance tended to report lower CWB. Limitation and implication are discussed.     

Environmental Preservation, Sectoral Unemployment, and Trade in Resources

This paper develops a general equilibrium model to examine the optimal level of environmental preservation in terms of its costs and benefits for a closed as well as an open economy. The optimal preservation policy for a closed economy is to tax the general population and use the tax revenue to compensate affected workers. Furthermore, for a small open economy, free trade in resources can meet whatever shortage of domestic productive resources that may occur, thereby leading to a higher optimal level of environmental preservation.     

Critical challenges of inventory management in service parts supply: A Delphi study

The primary purpose of the study is to determine the critical challenges facing service parts managers and to help bridge the gap between research and practice. In order to accomplish this, a series of semi-structured interviews with 18 senior service parts managers from a variety of industries frequently dealing with service parts inventory issues was used as the basis of input for a web-based Delphi study. The results of the study include 18 commonly identified potential service parts inventory issues and ten key challenges for the service parts supply industry. The identified challenges should serve as a guide for both researchers seeking to contribute to the service parts body of knowledge and practitioners who are regularly faced with service parts inventory issues.     

Cross-price effects in demand between exports and imports

This paper extends the Bickerdike-Robinson-Metzler elasticities model to include cross-price effects in demand between exports and imports, and compares the extension to the Kemp general-equilibrium model. In the extended elasticities model, positive cross-price influences impede adjustment; in the general-equilibrium model, however, such influences are part of the uniform gross-substitutability condition that assures stability. This difference arises because income and own-price effects for nontraded goods are constrained to zero in the elasticities model. Evidence of the demand for exports and imports for the United States indicates significant crossprice effects.