Buyer Power and Industry Structure

This paper investigates the exercise of market power by a large buyer who emerges via growth, merger, or group purchasing. It explores the efficiency and redistributive effects of such an event when a competitive fringe of small buyers remains in the market. Terms of trade, including those for small buyers, depend on structural conditions on the supply side of the market and the nature of interactions between the newly emerged dominant buyer and suppliers. Predicted aggregate welfare effects have implications for antitrust.     

Students’ knowledge sources and knowledge sharing in the design studio—an exploratory study

Architectural design is a knowledge-intensive activity; however, students frequently lack sufficient knowledge when they practice design. Collaborative learning can supplement the students’ insufficient expertise. Successful collaborative learning relies on knowledge sharing between students. This implies that the peers are a considerable design knowledge source for the students. However, students are involved in grade competition. Students may not be willing to share because knowledge is a critical resource for students’ performance. The web technology has been used to facilitate knowledge exchange among students; nevertheless, the convenience of technology may tempt free riding behavior and impede the development of a knowledge sharing culture. The purpose of this exploratory study is to probe whether the peers and a web forum are the students’ primary knowledge source by investigating students’ knowledge sources during the design process. The results demonstrated that (1) studio-mates were a primary design knowledge source for the students, (2) the ill-defined nature of design problems may be the main contributing factor encouraging knowledge sharing behavior, (3) the shared web forum was not a primary knowledge source for the students and did not have a significant influence on the knowledge sharing culture, and (4) we can estimate the knowledge sharing culture in a design studio through investigating students’ knowledge sources. Furthermore, several additional findings and implications are elaborated.     

The bidirectional relationship between competitive intensity and collaboration: Evidence from China

This paper argues for a bidirectional relationship between competitive intensity perceived by a firm and its strategic response in the form of forging collaborations. Consistent with a variety of theoretical perspectives including enactment, cognition, and the resource-based view, we conceptualize competitive intensity as a firm-level construct and hypothesize that collaboration will reduce the perceived competitive intensity due to the twin mechanisms of information acquisition and risk reduction. We also predict an inverted U-shaped relationship for the impact of competitive intensity on the likelihood of forming at least one collaboration. We test our predictions using data on the dynamic and competitive Chinese market. Our analyses provide strong support to the bidirectional argument.     

The Effects of Average Norm Model Regulation: The Case of Electricity Distribution in Sweden

Following the reform of energy sectors, some countries have used engineering norm models in incentive regulation of network utilities. In 2003, Sweden adopted this approach to regulation of electricity distribution networks. This paper examines whether the norm models represent the real networks and create incentives for performance improvement. We analyse data from 138 network concession holders between 2000 and 2007. The results show that norm models are not adequate representations of real networks. Also, utilities that perform better than their norm models tend to behave opportunistically. Finally, we find that private utilities respond more strongly to incentives.     

Mobility norms,risk aversion,and career satisfaction of Chinese employees

Drawing on Turner’s (American Sociological Review, 25:855–867, 1960) framework of contest and sponsored mobility norms, this study investigated factors that affect employees’ career satisfaction in the Chinese setting. Using two organization-referenced variables, procedural justice and perceived organizational support (POS), to represent contest mobility norm and sponsored mobility norm, we evaluated their effects on career satisfaction. We also explored the moderating role of risk aversion on these relationships. Several hypotheses were developed and tested on a sample of 239 employees working in a foreign-invested enterprise in China. The results of regression analysis showed that procedural justice and POS contributed to career satisfaction in a cumulative manner. Further, among the risk-averse employees, the relationship between POS and career satisfaction was stronger.     

Economics at the FTC: Mergers,Dominant-Firm Conduct,and Consumer Behavior

Economists at the Federal Trade Commission (FTC) pursue the agency’s competition and consumer protection missions. In this year’s essay, in antitrust, we discuss the new Merger Guidelines, three exclusion cases, and R&D issues in the Thoratec/HeartWare merger and the Google/AdMob merger. In consumer protection, we discuss the FTC’s new rule on debt settlement, our efforts to improve disclosures, and our recent work on appliance energy disclosures.     

How law,politics and transnational networks affect technology entrepreneurship: Explaining divergent venture capital investing strategies in China

This article identifies three distinct patterns of investment behavior by venture capital firms investing in technology sector start-ups in China. The first pattern is the service-oriented, technology-light investment behavior exhibited by the foreign venture capitalist firms not founded by ethnic Chinese. The second pattern is the technology creation investment pattern exhibited by foreign firms founded by ethnic Chinese and embedded in ethnic Chinese communities. The third pattern consists of local state-funded Chinese venture capital firms that choose either to invest in state-directed projects or opt out of investing in technology start-ups entirely. What explains the differences in behavior between the strictly foreign and the ethnic Chinese-embedded foreign firms are the different legal environments in which these firms honed their skills. The different learned experience gained from operating in different environments explains why the foreign firms avoid investing in technology-generating activities in China whereas the ethnic Chinese firms are willing to do so despite China’s notorious weak intellectual property rights regime. The political factors influencing the distribution of finance in China explain the behavior and essential failure of the local state-run venture capital firms. These findings demonstrate that several distinct, separate and non-clashing institutional arrangements are concurrently operating within China and shaping the behavior of venture capital firms there.     

Children’s developing understanding of technology

The issue of children’s conceptions of technology and technology education is seen as important by technology educators. While there is a solid body of literature that documents groups of children’s understandings of technology and technology education, this is primarily focused on snapshot studies of children aged 11 and above. There is little literature relating to individual children’s changing conceptions over time, or to children younger than 11. This paper documents and discusses the changing understanding of the meaning of the word ‘technology’ of seven children over their first 6 years of primary school (age 5–10). It seeks to explain the source of the children’s understandings of the word ‘technology’ and to suggest some teaching and planning implications for technology educators.     

Useful measures in the field of time and dimensional rationalisation of manual training lessons

Schoolwork, especially lessons in manual skills is often associated with various ergonomics stresses. These stresses are the result not only of school obligations but also of the physical working environment and inadequate lesson planning. Much can be done in this field if certain approaches are taken into consideration at the work planning stage. Thus we can use certain analytical methods, such as the Method of Temporary Observations (Multi-Moment Method) and OWAS (a method for the evaluation of postural load during work), when positioning stressful lesson factors. This can be done in a relatively simple way in the field of time rationalisation as well as in the field of dimensional work adjustment to pupils. Research results in this paper show that by using a planned directed approach in this field, it is possible to achieve, a higher level of efficiency with normal levels of fatigue.