Single Object Auctions With Externalities: A Tractable Model

We consider the single object auction model with allocative externalities in a private valuation and quasi‐linear setting. We model externalities by assuming that every agent has a private valuation (for the object) and a strict ranking of other agents. The utility for an agent when another agent receives the object is the product of his own valuation and a real number that depends on the rank of this agent in his ranking. When the only private information is the valuation of the agents, we characterise the implementable allocation rules and use these to derive the optimal auction. The optimal auction collects payments from agents who do not receive the object.     

Modeling income inequality and openness in the framework of Kuznets curve: New evidence from China

This article tests the relationship between openness and income inequality in openness Kuznets curve framework. The Auto Regressive Distributed Lag (ARDL) estimator is employed to establish the long run relationship between openness and income inequality. We add to the literature by noting that Kuznets curve fits the relationship between openness and income equality in the case of China. This evidence is new and in line with the Kuznets hypothesis that income inequality rises with the increase of openness and then starts fall after a critical point.     

Communication and marketing of services by religious organizations in India

Marketing communication is a vital strategic tool for religious organizations to achieve competitive differentiation. The study uses media richness theory with competitive response to develop hypotheses about the use of personal and non-personal channels by religious organizations. The study uses unique primary survey data on 568 Hindu, Muslim, Christian, Sikh and Jain organizations spread over 7 states in India, collected between 2006 and 2008, to investigate the marketing communication strategy of religious organizations in response to their competitors' use of non-personal communication channels and provision of non-religious services. The findings suggest that if a competitor uses higher non-personal communication channels, then this evokes a retaliatory reaction with the incumbent, increasing their personal communication channels. Second, an incumbent who is more responsive to a competitor increasing their non-religious service provision will respond by increasing their non-personal communication channels and by decreasing their personal channels. The findings have implications for managers who need to select the richness of the media for their communications' strategy in the context of competitive response.     

Biases and Strategic Behaviour in Performance Evaluation: The Case of the FIFA's best soccer player award

In this paper, we study biases in performance evaluation by analysing votes for the FIFA Ballon d'Or award for best soccer player, the most prestigious award in the sport. Our findings suggest that ‘similarity’ biases are substantial, with jury members disproportionately voting for candidates from their own country, own national team, own continent and own league team. Further, we show that the impact of such biases on the total number of votes a candidate receives is fairly limited and hence is likely to affect the outcome of this competition only on rare occasions where the difference in quality between the leading candidates is small. Finally, analysing the incidence of ‘strategic voting’, we find jury members who vote for one leading candidate are more, rather than less, likely to also give points to his main competitor, as compared with neutral jury members. We discuss the implications of our findings for the design of awards, elections and performance evaluation systems in general and for the FIFA Ballon d'Or award in particular.     

Extrinsic psychosocial stressors and workers’ productivity: impact of employee age and industry experience

ABSTRACT

This paper aims to explore the impact of employee age and industrial experience on extrinsic psychosocial stressors that may influence the productivity of workers. Using an integrated theoretical approach, this study examines four extrinsic psychosocial stressors, i.e. work environment, infrastructure, economy and country environment. The data were collected from Pakistani construction industry through a questionnaire survey approach. The study’s findings show that workers having diverse ages did not agree over several work environments and economy-related psychosocial stressors, whereas workers having diverse industrial experiences were in disagreement over numerous country environment and economy-related psychosocial stressors. The study concludes that firms need to mitigate the work environment related psychosocial stressors in young workers, such as, over congestion and inaccessibility to different tools, high temperature and workspace atmosphere. Moreover, organizational and governmental support are direly needed to overcome the country environment-related psychosocial stressors of less experienced workers who are more susceptible to these stressors due to the complex organizational culture, occurrence of natural disasters and unfavourable economic and political state of the country.     

A Measure of Trade Induced Adjustment in Volume and Quality Space

In this paper we contribute to the literature on the measurement of international trade flows. Specifically, we combine changes in the volume and quality in matched trade changes to present a simple new index together with a geometric framework that can be used to visualise changes in quality and volume simultaneously. We illustrate the usefulness of our simple extension with data for trade between Malaysia and China between 1994 and 2004.     

Patterns of employment relationships: the association between compensation policy and contractual arrangements

Firms respond differently to labour market regulations and develop an employment relationship accordingly. We use linked employer–employee data to examine the relationship between compensation policies and contractual arrangements in large-sized firms in Portugal. In this country, the wages are regulated through minimum wage and collective agreement, while employment is protected by stringent employment legislation. The empirical analysis starts with a fuzzy clustering to identify typical compensation policies. Three major segments emerge from this analysis: Competitive, Internal Labour Markets and Incentive. The first segment comprises low-wage firms, which are highly responsive to market conditions. The other two reveal properties of internal labour markets, although the incentive-based firms reinforce the use of discretionary power to differentiate the workforce. Subsequently, we estimate a regression model to examine how the compensation policy interacts with contractual arrangement. Empirical evidence confirms the segmentation predictions, i.e. low, flexible wages and flexible contracts prevail in the same firms. Furthermore, vulnerable categories like young workers and female workers are over-represented in Competitive firms, while high-wages are associated with incentive devices benefiting white-collar employees. Apparently, firms foster inequality among segments of workers and often penalise or favour the same category of workers.