Behavioral strategy

Behavioral strategy merges cognitive and social psychology with strategic management theory and practice. Despite much progress, the aims and boundaries of behavioral strategy remain unclear. In this paper we define behavioral strategy and identify the main unsolved problems. We propose a unifying conceptual framework for behavioral strategy and conclude by introducing the papers of the Special Issue on the Psychological Foundations of Strategic Management. Copyright © 2011 John Wiley & Sons, Ltd.     

Can Ecotourism Interpretation Really Lead to Pro-Conservation Knowledge,Attitudes and Behaviour? Evidence from the Galapagos Islands

Proponents of ecotourism within protected areas believe that tour design and interpretation can help mitigate the negative impacts of tourism, human and environmental, and build an educated and motivated constituency that supports environmental conservation and social improvements. However, ecotourism's claims to achieve those objectives are largely untested, and linkages between tourism's operational characteristics and positive changes in tourists” environmental knowledge, attitudes and behaviours are largely unexplored. This exploratory research investigated the efforts of one Galapagos National Park tour operator to explore whether a well-conceived interpretation/ecotourism product could influence tourists” educational outcomes and support of environmental conservation. Results suggest that well-designed and delivered interpretation during the ecotourism experience can increase knowledge of the host-protected area, supportive attitudes towards resource management issues facing the host-protected area, general environmental behavioural intentions and philanthropic support of conservation.     

Sequential, nonzero-sum “Blotto”: Allocating defensive resources prior to attack

The strategic allocation of resources across multiple fronts has long been studied in the context of Blotto games in which two players simultaneously select their allocations. However many allocation problems are sequential. For example, a state trying to defend against a terrorist attack generally allocates some or all of its resources before the attacker decides where to strike. This paper studies the allocation problem confronting a defender who must decide how to distribute limited resources across multiple sites before an attacker chooses where to strike. Unlike many Blotto games which only have very complicated mixed-strategy equilibria, the sequential, nonzero-sum “Blotto” game always has a very simple pure-strategy subgame perfect equilibrium. Further, the defender always plays the same pure strategy in any equilibrium, and the attacker's equilibrium response is generically unique and entails no mixing. The defender minmaxes the attacker in equilibrium even though the game is nonzero-sum, and the attacker strikes the site among its best replies that minimizes the defender's expected losses.     

Investor type trading behavior and trade performance: Evidence from the Thai stock market

This paper examines the trading behavior and decomposes the trading performance of foreign, individual and institutional investors as well as proprietary traders in a dynamic emerging stock market, the Stock Exchange of Thailand. Foreign investors follow a positive feedback, momentum strategy and are good short term market timers but have poor security selection performance in poor markets, thus suggesting that they have a macro (market timing) but not a micro (security selection) informational advantage relative to local investors. Institutions and proprietary traders have poor security selection trading performance. Individuals display herding behavior and have fairly good security selection performance, but individual investors appear to compensate proprietary traders for the provision of short term liquidity by proprietary traders, so individuals' security selection gains are canceled out by market timing losses.     

The promises and constraints of consumer-directed healthcare

Consumer-directed healthcare promises to reduce costs and increase quality by expanding provider choice for prospective patients. High-deductible insurance, employer- or government-subsidized health savings accounts, transparent pricing, and accurate information on clinical performance help generate millions of patients shopping for healthcare. As in any other well-behaved market, when patients shop, there is a link between financial reward and value for the individual patient. Absence of price competition, agency problems, and high barriers to entry in local markets are market failures that currently break this link in U.S. healthcare. Consumer-directed health plans are already popular among many employers and have established a momentum that indirectly shapes discussion of reform by the Obama administration. Complexity of reporting clinical results, dependence of treatment success on at-home patient behavior, and scientific ignorance among consumers threaten delivery of results promised by theory. Successful implementation requires regulator attention to sophisticated data reporting that adjusts for clinical risk, avoidance of patient-focused marketing that leads to over-consumption, and adequate subsidy of health savings accounts. In the end, implementation shifts the locus of healthcare system control from cost-shifting negotiations between employers, providers, and payers to new-found purchasing power of prospective patients.     

Organizational AIDS policies: Aiming at a moving target

This article examines the effect that theArline decision is likely to have on organizational policies regarding terminations when such actions involve AIDS-afflicted employees working in organizations that are subject to the provisions of the Vocational Rehabilitation Act of 1973. Certain criteria that must be considered when an organization is contemplating terminations involving this class of employees are defined. In addition, a systematic analysis technique which may provide insights in arriving at such employment decisions is specified. Finally, the authors identify several elements which have yet to be adequately addressed by existing legislation or court decisions that serve to impede the establishment of effective policies in this area.     

The role of miniatures in computable general equilibrium modelling : Experience from ORANI

ORANI is a large general equilibrium model of the Australian economy used by policy analysts and university research workers. This paper describes the role of miniature models in the development and application of ORANI. Miniature versions of ORANI have been useful in (a) explaining results; (b) detecting errors; (c) conducting sensitivity analyses; (d) experimenting with new specifications; and (e) teaching. The present paper concentrates mainly on (a) and (b). A miniature model is developed to explain ORANI results for the effects of increases in protection, reductions in the real costs of labour, increases in oil prices and increases in real aggregate demand.     

THE ESTIMATION OF PRODUCTION FRONTIERS: THE AUSTRALIAN LIVESTOCK/CEREALS COMPLEX1

An attempt is made to combine, empirically, the estimation of product transformation surfaces with the more conventional methods of linear supply analysis. This synthetic approach is used to fit simultaneously a system of six aggregate supply functions. The products covered account for more than 70 per cent of the gross value of Australian rural production.