The visible hands,quantity targets as coaxing tools

Planning is studied in a two-tier environment motivated by Soviet economic reforms. The center's goal is ex post balancing of demand and supply of funded commodities after one informational exchange period. Firm managers make production decisions to maximize a combination of current profit and output adjusted for penalties when quantity directives are not fulfilled. After judiciously differentiating incentive structures, the center manipulates quantity targets to coax production decisions satisfying its balancing objective. A taxonomy of target misspecifications is developed. Traditional concerns of ex ante consistency and feasibility of production plans are shown to be less important in the new environment.     

Pulse Fishing and Stock Uncertainty

Large variation in stock dynamics affects the accuracy of stock estimates, which fisheries managers rely on when determining quotas and other regulations. The purpose of this paper is to investigate the implications of uncertainty on pulse fishing. We show that as the variance of the random natural fluctuations increases, the optimal pulse length decreases and converge toward a constant-escapement policy. Hence, in fisheries with large natural variability, a constant-escapement policy is a good approximation of the optimal policy.     

Do Australian Trade Policies Discriminate Against Less Developed Countries?*

The view that Australian protection discriminates against the less developed countries (LDCs) is examined in this paper. It distinguishes between direct discrimination through tariff preferences and indirect discrimination through inter-commodity differences in rates of protection. The second mechanism proves to be more important. While Australian protection did not discriminate against the LDCs in 1968–49, by 1977–78 it did. This reflects changes in the commodity composition of Australia's imports from the LDC_S.     

AN APPROPRIATE SYSTEM FOR DEFLATION OF SECTORAL INCOME IN A DEVELOPING ECONOMY ILLUSTRATED BY THE INDUSTRIAL SECTOR OF THE INDIAN ECONOMY FROM 1951 to 1965*

The technique of national income accounting is a part of what Hicks has termed “The Fixprice Method”. Deflation is an attempt to approximate a real economy to a fixprice economy. It is shown that if the propositions of macro-dynamics are to hold, this deflation cannot be done in accordance with the price structure prevailing at any particular historical time, but must use that given by the capital theory of value, viz., when returns to labour are equal to zero. For a labour-abundant developing economy this will correspond to prices based on opportunity cost principles. As an illustration, sectoral incomes on this basis have been calculated for the industrial sector of the Indian economy for the years 1951 to 1965.     

Bivariate and multivariate scaled association models. An application to homogamy of social origin and education in Hungary between 1930 and 1979

In this article we compare bivariate and multivariate models for homogamy of social origin and education to test whether bivariate models of homogamy lead to biased results. We use data on Hungarian couples married between 1930 and 1979 and loglinear models of scaled association. The results indicate some differences between bivariate and multivariate analyses. At each point of time bivariate models overestimate homogamy, both with respect to education and social origin. However, results on trends in time do not differ much between the two analyses. The exception is the period 1940–1959, in which bivariate analysis showed decreasing educational homogamy, and multivariate analysis showed an increasing trend. The latter finding can be explained by declining homogamy of social origin, as well as the weaker reproduction and cross-effects in this period.     

Coping with coopetition—Facing dilemmas in cooperation for sustainable development: The case of the Dutch smart grid industry

This paper is amongst the first to examine coopetition strategy for sustainable development at the network level. Companies who want to successfully implement complex innovative technologies that support sustainable development need to collaborate with other actors of the innovation ecosystem, including their competitors, so that they can develop standards, interoperable products, pool knowledge, and resources and bundle forces to compete against other technologies. Collaboration with competitors brings benefits, but also many risks. We investigated how firms cope with these risks when establishing an innovation ecosystem to implement a new technology in society. We conducted research in the Dutch smart grids sector and explored how these firms minimize inherent risks of coopetition. We found that system‐building actors in the Dutch smart grid field not only minimize inherent risks, but from the start of their collaboration they implement so‐called enablers to prevent these risks upfront.     

Reconciling introspective utility with revealed preference: Experimental arguments based on prospect theory

In an experiment, choice-based (revealed-preference) utility of money is derived from choices under risk, and choiceless (non-revealed-preference) utility from introspective strength-of-preference judgments. The well-known inconsistencies of risky utility under expected utility are resolved under prospect theory, yielding one consistent cardinal utility index for risky choice. Remarkably, however, this cardinal index also agrees well with the choiceless utilities, suggesting a relation between a choice-based and a choiceless concept. Such a relation implies that introspective judgments can provide useful data for economics, and can reinforce the revealed-preference paradigm. This finding sheds new light on the classical debate on ordinal versus cardinal utility.     

Best fit,best practice,or stuck in the middle? The impact of unit ownership on unit HR performance in franchise systems

Franchising is an important form of entrepreneurial wealth creation in many retailing and service industries. Since Human Resource Management (HRM) is a critical factor in such industries, it is important to understand how franchisees—as semi-autonomous entrepreneurs—deal with HRM in their units and how this ultimately affects performance at the unit level. However, the very few studies linking franchisee HRM behaviors to performance have not included multi-unit franchising (MUF) as a type of unit ownership. Given the ever-increasing popularity of MUF and the unique characteristics of MUFs, this represents an important knowledge gap. We aim to fill this gap by building a theoretical framework on how the type of unit ownership affects unit HR performance within franchise systems. Building on agency, resource and entrepreneurship perspectives, we propose that units owned by single-unit franchisees (SUFs) and small MUFs (i.e., franchisees with a very small number of units) adopt a ‘best fit’ system regarding HRM, whereas company-owned units (COs) and units owned by larger MUFs (i.e., franchisees with a large number of units) typically adopt a ‘best practice’ system. Each system has its own advantages and disadvantages, which results in two contrasting propositions regarding their effects on unit performance. Moreover, we expect the units owned by medium-size MUFs to have the lowest performance since they are ‘stuck in the middle’ regarding their HRM system.