Legalization of drugs: Effects on the workplace

In the last few years bipartisan support for legalizing drugs has grown to a surprising level. Because of the lack of involvement of the business community in this debate, we surveyed the human resource managers of 127 firms about their perceptions of the effects of legalization. Their responses were uniformly negative, with expectations that drug use, absenteeism, worksite crime, and liability costs would increase, while the quality and quantity of work would decline. They also forecast increases in drug testing, performance monitoring, and education and rehabilitation programs as a result.     

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Since the Asian financial crisis of the late 1990's, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.     

THE MEASUREMENT OF REAL INCOME

This paper is about the theory of the measurement of real income. By "theory of measurement" I mean the characterization of statistical terms as variables in a model, just as real consumption is characterized as an indicator of utility and the consumer price index is characterized as the cost of attaining a given level of utility in the economic theory of index numbers developed by Konus, Frisch and others half a century ago. I identify five logically distinct and internally-consistent concepts of real income: maximum sustainable consumption, consumption plus the output of new capital goods, consumption plus the increase in the capital stock where capital can be measured in two quite separate ways, and the sum of actual consumption and consumption forgone in the investment process. The last of these concepts is the most appropriate as a guide to producing long time series of real income for measuring a country's rate of economic growth.     

A comparative analysis of multiattribute attitude models

In the consumer behavior context, multiattribute attitude models used to predict consumer choice in multiple criteria decision making situations have produced mixed results. Prediction of consumer behavior from attitudes, consequently, has been highly debated in recent years with researchers using beliefs-only, full, and extended multiattribute attitude models. The research underlying this paper was designed to compare the predictive superiority of the beliefs-only model, the full multiattribute attitude model, and a new representation identified as the combined multiattribute/determinant attribute attitude model. Data concerning patronage of fast-food chains were collected from a student panel for seven weeks. Predictive superiority was determined by average adjusted R² using the patronage behavior dependent variable. All models were tested in aggregated and disaggregated form.     

An examination of the moderating effect of channel member firm size on perceptions of preferred channel linkages

The purpose of this study was to empirically test a model of channel member preferability status. The channel linkage examined was the food manufacturer—food broker interface. The results of the study suggest that the preferability status of a food manufacturer as perceived by a food broker is a function of manufacturer coercive and noncoercive power, food broker organizational role stress, and food broker performance. The findings also suggest that some of the relationships are moderated by the size of the respondent's firm. Both authors contributed equally in this study.     

An Experimental Study of the Effect of Private Information in the Coase Theorem

We investigate, in an experimental setting, the effect of private information on the Coase theorem's predictions of efficiency and allocative neutrality. For a two-person bargaining game, we find significantly more inefficiency and allocative bias in the case of private information compared with the case of complete information. We also find substantial bargaining breakdown, which is not predicted by the Coase theorem. For the case of private information, we reject the Coase theorem in favor of the alternative of a generalized version of the Myerson—Satterthwaite theorem, which predicts inefficiency, allocative bias in the direction of the disagreement point, and some bargaining breakdown.     

The crisis of urbanization in Asia: finding alternatives to megalopolitan growth

The rapid expansion of large Asian cities generates serious social, economic, and physical problems, and has thereby forced these areas to create alternative expansion plans, such as the idea of building up secondary cities and towns. The result of the rapid expansion of large cities, combined with poor urban management, accentuates the mass poverty in many Asian cities. This large urban population is expected to double or triple in size between 1970 and 2000. Because substantial resources are required to manage these megalopolitan areas, it is reasonable to deduce that millions of these city dwellers will be living in absolute poverty by 2000. It is the prospect of continued rapid growth over the next 2 decades that presents the most serious problem for Asian countries. Most metropolises cannot provide enough jobs for the current work force. In addition, public facilities, housing, transportation, and health services are examples of other problems threatened by a heavy concentration of people. Attempts to control this growth have been unsuccessful, mainly due to the 1950s and 1960s emphasis on productive investment, which left rural regions underdeveloped and poor. Secondary cities and regional centers in Asia perform important functions in promoting widespread economic and social development: 1) they stimulate rural economies and therefore establish a pattern of step-wise migration, and 2) they absorb population and therefore, relieve some of the pressure put on the largest metropolitan areas. Studies of secondary cities and their attempts at controlling growth of large metropolitan centers suggest broad guidelines for strategies. Some of these are: 1) the existence of large metropolises has little effect on the growth of primate cities; 2) few controls on growth of large areas are likely to be effective unless there are viable alternative locations at which high threshold economic activities can operate; 3) secondary cities must be closely related to the agricultural economies of their rural hinterlands; and 4) attention must be given to improving transportation and other communication between large metropolitan centers, secondary cities, and smaller cities and towns. The continued concentration of people and economic activities in vast megalopolitan areas will continue to generate serious economic and social problems that may help stimulate the evolution of some of these strategies.