The law of supply in games, markets and matching models

Summary In large games with transferable utility, core payoffs satisfy a comparative statics property: If the proportion of one type of player increases, then the core payoff to that type of player decreases (does not increase). Markets with transferable utility satisfy a similar property: if the aggregate supply of a commodity increases, its value relative to the value of all commodities decreases. In market games, if one type of agent becomes more plentiful, his competitive payoff falls, and its decrease is engineered by a decrease in the relative value of his endowment.We thank Bob Anderson, Joe Farrell, Steve Goldman, Chris Shannon, seminar participants of the Mathematical Economics Seminar at Berkeley (August 1994), the University of Pittsburg (November 1994), Tel Aviv University and the Institute on Rationality at the Hebrew University (January 1995), and especially Vince Crawford for useful discussion.     

Developing Woodlands for Tourism: Concepts,Connections and Challenges

Driven by potential economic benefits for rural communities, tourism has become an increasingly central focus of sustainable woodland management in Great Britain. Knowledge of the values and uses of woodlands for tourism, and the impacts of woodland management on tourism is, however, limited. This paper outlines qualitative research in three study areas which used in-depth interviews and discussion groups to engage with tourism providers to explore these issues. It argues that woodlands are an important constituent of ‘countryside capital’, with woodlands” imagery and accessibility, and their natural and man-made resources used directly and indirectly by tourism enterprises. A landscape-scale approach to tourism planning and development is advocated to ensure a more holistic use of woodlands for tourism. Critical issues are identified as being strategy and integration, local engagement, sharing of information, resources, costs and benefits between stakeholders, and policies and practices to stimulate innovation and growth.     

Identity Threat Assessment and Prediction

Identity theft and related threats are increasingly common occurrences. This paper is an overview of the Identity Threat Assessment and Prediction (ITAP) project. It describes our use of news stories to gather raw data about incidents of identity theft, fraud, and abuse. Through these news stories, we seek to determine the methods and resources used to carry out these crimes; the vulnerabilities exploited; and the consequences of these incidents. The ITAP model is a large and continually growing, structured repository of such information. There are currently about 5,000 incidents captured in the model. To this body of information, we apply a variety of analytical tools that enable us to show and compare threats, losses, and trends. We discover notable and sometimes surprising results. A goal of this project is to be able to predict future threats, and to provide some concrete guidance on how to avoid them.     

What the EU Can Learn from the American Experience with Unemployment Insurance

This paper aims to contribute to the ongoing unemployment insurance dialogue and debate by providing an overview of the equivalent program in the US and identifying valuable lessons from the American experience.     

The Economic Consequences of the Statement of Financial Accounting Standards (SFAS) No. 150

SFAS No. 150, “Accounting For Certain Financial Instruments with Characteristics of Both Liabilities and Equity” (SFAS 150), requires companies to report mandatorily redeemable preferred stock (MRPS) as a liability, and the dividends on these securities as interest expense. The purpose of this study is to examine the economic consequences of SFAS 150’s adoption on a sample of public companies. Our analysis indicates that adoption resulted in both intended and possible unintended economic consequences. Specifically: (1) the impact of SFAS 150 on non-public companies caused the FASB to review its position on the disclosures concerning MRPS; (2) some companies redeemed their MRPS prior to the adoption date of the standard; and (3) approximately 4% of sample firms were required to disclose MRPS as a liability.     

An Examination of Differences Between Organizational Legitimacy and Organizational Reputation*

abstract Organizational legitimacy and organizational reputation have similar antecedents, social construction processes and consequences. Nonetheless, an improved understanding of relationships between legitimacy and reputation requires that differences between the two be specified and clarified. Our examination of past research indicates that legitimacy emphasizes the social acceptance resulting from adherence to social norms and expectations whereas reputation emphasizes comparisons among organizations. We empirically examine two antecedents of the financial, regulatory, and public dimensions of legitimacy and reputation in a population of US commercial banks. We find that isomorphism improves legitimacy, but its effects on reputation depend on the bank's reputation. Moreover, higher financial performance increases reputation, but does not increase the legitimacy of high performing banks.     

The Interaction of Top Management Group,Stakeholder, and Situational Factors on Certain Corporate Reputation Management Activities*

abstract This study examines when a firm's members are most likely to promote and defend its reputation. Building on past research in impression management theory and the upper‐echelons perspective, I argue that firms facing increased visibility among different stakeholder groups will increase corporate reputation management activities towards those groups and decrease activities towards other groups. I further argue that top management group characteristics will moderate these relationships, suggesting that certain top management groups are more attuned to the situational needs of reputation management. A set of hypotheses are tested using pooled cross‐sectional time‐series data on a set of Fortune 500 companies. Results indicate that firms generally directed reputation management activities towards their more visible stakeholders. However, the type and extent of reputation management behaviour varied. Specifically, for firms whose top management groups were more highly educated or output oriented, highly visible situations with the media were more likely to be associated with a higher use of press releases. Moreover, those same firms devoted more resources to mass media advertising under situations of high consumer visibility compared to firms whose top management groups were less educated or throughput oriented.     

Shareholder Primacy and the Trajectory of UK Corporate Governance

Core institutions of UK corporate governance, in particular those relating to takeovers, board structure and directors’ duties, are strongly orientated towards a norm of shareholder primacy. Beyond the core, in particular at the inter‐section of insolvency and employment law, stakeholder interests are better represented, thanks largely to European Community influence. Moreover, institutional shareholders are redirecting their investment strategies away from a focus on short‐term returns, in such a way as to favour stakeholder‐inclusive practices. We therefore suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded.     

Donation dilemmas: A consumer behaviour perspective

With the aim of developing a better understanding of an individual's donation decision process this paper focuses on the information search undertaken by a prospective donor. It discusses the level of problem solving that characterises various donations, using the body of consumer decision-making literature to provide a theoretical framework for the investigation. From the results it appears that donor decision making follows a similar pattern to consumer buying decisions. There appears to be a low incidence of extended problem solving, even where relatively large donations are concerned. Examples of limited problem solving and routine response behaviour, by contrast, were more prevalent.