Using seminonparametric methods to model hospital cost functions: The multi-product asymptotically ideal model

The article develops a multi-product extension of the asymptotically ideal model which has several advantages over traditional cost functions. The AIM cost function has greater flexibility and allows for economic theory to be imposed via parametric restrictions alone. In addition, the AIM cost function is superior to other seminonparametric approaches as it is unlikely to suffer from overfitting problems. The multi-product AIM cost function is estimated using hospital data from 137 VA hospitals.     

Spatially explicit micro-level modelling of land use change at the rural–urban interface

This paper describes micro‐economic models of land use change applicable to the rural‐urban interface in the US. Use of a spatially explicit micro‐level modelling approach permits the analysis of regional patterns of land use as the aggregate outcomes of many, disparate individual land use decisions distributed across space. In contrast to the models featured by Nelson and Geoghegan, we focus on models that require spatially articulated data on parcel‐level land use changes through time. In characterising the spatially disaggregated models, we highlight issues uniquely related to the management and generation of spatial data and the estimation of micro‐level spatial models.     

Avatars as salespeople: Communication style, trust, and intentions

Interactions with retail salespersons in stores contribute to building trust and profits. Within the largely impersonal Internet, an interactive animated character or avatar, playing the social role of an online sales assistant, should provide a potent source of social presence and so have the potential to replace some of these interactions. This investigation tests whether avatars with social- or task-oriented communication styles contribute to user trust and patronage intentions. Further tests explore the moderating effects of product/service type. The study includes an online experiment and survey, involving 636 participants, mainly from North America, Oceania and Europe, allocated randomly to different treatments.Task-oriented communications contribute to trust, which in turn contributes to patronage intentions, especially for search goods/services. Social-oriented communications also contribute directly to trust and to patronage intentions, most strongly for credence goods/services. The authors recommend a three-fold approach to avatar implementation, involving requirements captured to define appropriate appearance, role, interaction style and content for the task. Conclusions include further suggestions for development and research.     

Spatial Economic Analysis in Data‐Rich Environments

Controlling for spatial effects in micro‐level studies of consumer and producer behaviour necessitates a range of analytical modifications. These range from modest changes in data collection and the definition of variables to dramatic changes in the modelling of consumer and producer decision‐making. This paper discusses conceptual, empirical and data issues involved in modelling the spatial aspects of economic behaviour in data‐rich environments. Attention is given to established and emerging agricultural economic applications of spatial data and spatial econometric methods at the micro‐scale. Recent applications of individual and household data are featured, including models of land‐use change at the urban–rural interface, agricultural land values, and technological change and technology adoption.     

Uncertainty in the transaction environment: an empirical test

Previous studies examining the relationship between uncertainty and vertical integration have produced a conflicting set of results. To clarify this puzzle we drew on the literature to conceptualize three distinct forms of uncertainty—primary, competitive, and supplier—and hypothesized that each had a different effect on vertical integration. The hypotheses were tested using experimental data collected from 308 managers. Consistent with our prediction of differential effects, we found that primary and competitive uncertainty were negatively associated with the decision to vertically integrate, but supplier uncertainty was positively related to the vertical integration decision. No interaction effects were found. Implications for theory and research are suggested. © 1998 John Wiley & Sons, Ltd.