Contracting with capacity constrained suppliers

This paper characterizes the optimal and efficient mechanisms to allocate simultaneously two substitute tasks to two suppliers. Two main results emerge from this analysis. First, even under some regularity conditions efficiency and optimality do not systematically coincide. Efficiency can always be achieved using some second price auctions which are optimal when both suppliers compete for the same task. When there is competition for different tasks the optimal production is distorted from efficiency over a nondegenerate interval of types so as to extract the full surplus over that interval. Second, full extraction of the surplus may still guarantee incentive compatibility. Received: November 2, 1998; revised version: March 2, 2000     

The Role,Use and Activation of Strong and Weak Network Ties: A Qualitative Analysis*

abstract A characteristic of studies seeking to explain the structure and operation of networks is the use of Granovetter's strong and weak tie hypothesis. Whilst this hypothesis has become an established paradigm, questions and disagreements arise over its applicability at demonstrating the real use and value of each tie. This study extends the work of Granovetter. Using a qualitative ethnographic approach to explore in‐depth the networking activities of fourteen respondents, it aims to enhance understanding about the role of ties, how they are used and activated for business activity. Findings demonstrate that it is strong ties that are instrumental for business activity and used extensively to provide knowledge and information but also to maintain, extend and enhance business and personal reputations. Unless activities require their reactivation and manifestation, strong ties remain latent and dormant within the network. Strong ties also provide the mechanism to invoke ‘weak’ ties, represented by nodes operating in a wider social context.     

Neighbors' Income,Public Goods,and Well‐Being

How does neighbors' income affect individual well‐being? Our analysis is based on rich U.S. local data from the Behavioral Risk Factor Surveillance System, which contains information on where respondents live and their self‐reported well‐being. We find that the effect of neighbors' income on individuals' self‐reported well‐being varies with the size of the neighborhood included. In smaller areas such as ZIP codes, we find a positive relationship between median income and individuals' life satisfaction, whereas it is the opposite at the county, MSA, and state levels. We provide evidence that local public goods and local area characteristics such as unemployment, criminality, and poverty rates drive the association between satisfaction and neighbors' income at the ZIP code level. The neighbors' income effects are mainly concentrated among poorer individuals and are as large as one quarter of the effect of own income on self‐reported well‐being.     

Are your employees minding their behavior?

Self-managed, "tailored" behavioral change programs cross both wellness and disease management issues and can impact the bottom line on health care costs of both employer and employee. For example, a back pain program can help change employee behavior to prevent the incidence and upflow of a condition to more severe and debilitating situations.     

Segmenting nonprofit stakeholders to enable successful relationship marketing: a review

• When establishing relationships with stakeholders, nonprofit organizations must define appropriate target groups to allocate resources purposively. This paper explicates that link by reviewing the literature on nonprofit stakeholder segmentation and by discussing whether stakeholder segmentation is perceived as a prerequisite of successful relationship marketing by nonprofit researchers.
• We develop two conceptual dimensions of nonprofit stakeholder segmentation: the stakeholders segmented and the segmentation criteria used. A systematic database and journal search yielded 53 papers, categorized according to these two dimensions. The studies are described briefly, and the relevance of the relationship marketing concept is examined and discussed. Several research gaps emerge from this review, leading to propositions for further research.

Copyright © 2014 John Wiley & Sons, Ltd.     

Firm credit in the euro area: a tale of three crises

Using survey data from 2009 to 2011, we analyse the effects of the recent euro area economic, financial and private debt crisis on the supply of and demand for bank finance for small and medium enterprises (SMEs). At the country level, we identify three distinct aspects of the recent crisis in the euro area affecting firm credit through different channels. Controlling for country fixed effects, the impact of a weak real economy on firm credit operates both by reducing firms’ demand for bank financing and by lenders increasing loan rejections and tightening terms and conditions on credit allocated. On the other hand, financial conditions have no significant effect on demand, but they do affect credit supply as we find that financial tensions worsen the chances of obtaining credit and its terms and conditions. We interpret this as evidence of a bank balance sheet channel negatively impacting credit provision. We find that private sector indebtedness has important effects on SMEs’ credit access and its terms and conditions.     

Assessing the Effectiveness of State Regulation and Enforcement of Hazardous Waste

This paper assesses the effectiveness of different state hazardous waste regulations and policies in promoting compliance using data for 8000 facilities across the United States. Because data on compliance is available only if a facility is inspected, the analysis uses a censored bivariate probit. Adoption of voluntary pollution prevention programs appears to decrease violations in general while adoption of strict liability and allocating a higher percentage of employees to regional offices appear to decrease Class 1 violations only. Although spending on waste programs also appears to decrease Class 1 violations, spending is positively correlated with the overall probability of violation.     

Moving toward crisis preparedness: Factors that motivate organizations

This article proposes that factors such as the experience of a crisis, new members on the top management team, regulation, expectations of the industry association, and the potential threat of media scrutiny motivate organizations to make changes in their crisis preparation practices and move toward greater preparedness. It describes how each of these factors motivate organizations to make changes, and explains specific characteristics that are critical in creating fundamental versus superficial changes.