The effect of code-sharing alliance formations and terminations on firm value: The role of co-specialization and scope extension

This paper examines how alliance co-specialization and scope extension affect firm value at the time of alliance formation and termination, and whether value creation upon alliance formation also explains value creation upon termination. Building on the relational view of the firm, we develop predictions that are tested using event study methodology and data on code-sharing alliances formed, extended, and terminated between 1994 and 2008. The findings suggest that from a stock market perspective alliance formation and termination can be seen as two interrelated events and that it is difficult to reverse initial valuations past the alliance formation phase. They also suggest that the stock market reacts to alliance formation more critically than to post-formation decisions such as alliance scope extensions and terminations.     

Is self-employment really a bad experience? : The effects of previous self-employment on subsequent wage-employment wages

We use propensity score matching methods to quantify the effects of past self-employment experience on subsequent earnings in dependent employment using data on the population of Danish men observed between 1990 and 1996. Our results generally confirm existing studies in that we find that a spell of self-employment is associated with lower hourly wages compared to workers who were consecutively wage-employed. We also show, however, that this effect disappears—and even becomes positive in some settings—for formerly self-employed who find dependent employment in the same sector as their self-employment sector. Hence, the on average negative effect of self-employment is rather caused by sector switching than by the self-employment experience per se. Moreover, formerly self-employed who either enjoyed a high income or hired at least one worker during their self-employment spell receive wages in subsequent dependent employment that are at least as high as for individuals who have been consecutively wage-employed.     

Estimating consumer willingness to pay for food quality with experimental auctions: the case of yellow versus fortified maize meal in Kenya

Biofortification of maize with provitamin A carotenoids is a new approach to the alleviation of vitamin A deficiencies in Africa. Unfortunately these varieties are yellow or orange, while consumers generally prefer white. Consumer willingness to pay for yellow and fortified maize was compared in experimental auctions in three regions in Kenya. The premium that consumers are willing pay for fortified maize (24%) was higher than the discount they require to buy yellow maize (11%), and in one zone consumers prefer yellow. Yellow color is, therefore, not an impossible obstacle for biofortified maize, although it would clearly be easier to introduce this maize first in regions where yellow maize is currently grown.     

Political disagreement in the classroom: testing cultural theory through structured observation

The cultural theory pioneered by Dame Mary Douglas has been tested with a range of research methods, but it has not yet been made subject to a ‘structured observation’. This method has been developed in psychology and management studies, and is especially useful for testing cultural theory’s prediction that fatalistic, hierarchical, egalitarian, and individualistic ways of perceiving and justifying tend to emerge in group debates about pressing social and environmental issues. We present the results of a structured observation of this prediction. Groups of high school students (aged 17–19) were asked for their opinions concerning three to five ‘wicked’ (i.e., highly complex) problems, and to discuss how to resolve them. Each utterance was coded according to the rationalities proposed by cultural theory. The results confirm cultural theory’s hypothesis that all four specific ways of defining, perceiving and resolving a wicked problem emerge when a number of people debate such an issue. We also discuss how Douglas’ cultural theory can be further developed and tested. Finally, we use our study to outline how the method of structured observation can contribute to political culture research in general.     

Impacts of climate change on lower Murray irrigation*

This article evaluates irrigated agriculture sector response and resultant economic impacts of climate change for a part of the Murray Darling Basin in Australia. A water balance model is used to predict reduced basin inflows for mild, moderate and severe climate change scenarios involving 1, 2 and 4°C warming, and predict 13, 38 and 63% reduced inflows. Impact on irrigated agricultural production and profitability are estimated with a mathematical programming model using a two‐stage approach that simultaneously estimates short and long‐run adjustments. The model accounts for a range of adaptive responses including: deficit irrigation, temporarily following of some areas, permanently reducing the irrigated area and changing the mix of crops. The results suggest that relatively low cost adaptation strategies are available for a moderate reduction in water availability and thus costs of such a reduction are likely to be relatively small. In more severe climate change scenarios greater costs are estimated. Adaptations predicted include a reduction in total area irrigated and investments in efficient irrigation. A shift away from perennial to annual crops is also predicted as the latter can be managed more profitably when water allocations in some years are very low.