DEBIASING STRATEGIES IN SUPPLY MANAGEMENT DECISION‐MAKING

Human judgment and decision making under uncertainty are vulnerable to decision biases leading to deviations from the standard assumptions of the rational paradigm in economics. This fact is currently not widely reflected by research on decision making in sourcing contexts. However, supply managers are aware of the judgment and decision challenges that result from existing and increasing levels of uncertainty in the external, upstream supply chain, and deploy decision supporting strategies for debiasing their judgments. The analysis of supply management decisions using 441 data units from 133 embedded cases from 15 buying organizations revealed high levels of such debiasing strategies. However, the seemingly most effective mitigation strategy recommended in the general debiasing literature ‐ creating awareness of the underlying mechanics causing decision biases ‐ was only employed by one buying organization, indicating a need to further investigate debiasing strategies specifically in supply management contexts.     

EXPLAINING RISING INEQUALITY: SKILL‐BIASED TECHNICAL CHANGE AND NORTH–SOUTH TRADE*

Abstract We review the ‘skill‐biased technological change (SBTC) versus North–South trade (NST)’ debate in order to explain widening wage inequality between skilled and unskilled workers. The traditional explanations based on exogenous SBTC and on the North–South Heckscher–Ohlin–Samuelson approach, as well as the early estimates that diagnosed a clear prevalence of the former, are firstly exposed and discussed. A presentation is then made of the recent theoretical literature that endogenizes SBTC, introduces new channels of impacts from NST, and combines both explanations. Finally, the current estimates show that (i) both explanations are relevant, (ii) their impacts differ according to industries and countries, (iii) outsourcing is the main vector of impact from NST and (iv) SBTC and NST interact.     

L’Évaluation économique de l'investissement dans la conservation des sols: Le cas des aménagements antiérosifs dans le bassin versant du lac Lagdo au Cameroun

This article presents an analysis of the economic impact of erosion control facilities on farm operations in the watershed of Lake Lagdo in Cameroon. Over the past several decades, erosion control facilities, which are erosion control techniques, have been introduced in Cameroon. No assessment of the impacts of these on farm operations had yet been made. Drawing on data from a survey carried out in 2007 and 2008 and a switching regression model, the study concentrates on the effectiveness of the production factors of parcels of land with and without erosion control facilities. The comparison of the average crop yields of the operations in our sample that either adopted or did not adopt such facilities shows a significant difference, representing up to 10% of the value of the farm production. Proof of a positive selection bias is also found, indicating that the farms with above‐average crop yields are more likely to adopt erosion control facilities. Such facilities on the parcels of land also provide an advantage in terms of increasing the productivity of inputs. The analytical approach developed and the positive conclusion of the selection bias can be pertinent to assessing other soil conservation technologies promoted in the area.     

Multiattribute perceptual mapping with idiosyncratic brand and attribute sets

This article proposes an extremely flexible procedure for perceptual mapping based on multiattribute ratings, such that the respondent freely generates sets of both brands and attributes. Therefore, the brands and attributes are known and relevant to each participant. Collecting and analyzing such idiosyncratic datasets can be challenging. Therefore, this study proposes a modification of generalized canonical correlation analysis to support the analysis of the complex data structure. The model results in a common perceptual map with subject-specific and overall fit measures. An experimental study compares the proposed procedure with alternative approaches using predetermined sets of brands and/or attributes. In the proposed procedure, brands are better known, attributes appear more relevant, and the respondent??s burden is lower. The positions of brands in the new perceptual map differ from those obtained when using fixed brand sets. Moreover, the new procedure typically yields positioning information on more brands. An empirical study on positioning of shoe stores illustrates our procedure and resulting insights. Finally, the authors discuss limitations, potential application areas, and directions for research.     

Putting sense of place at the centre of place brand development

Developing a place brand involves highlighting the distinctive attributes of a place that could be used to enhance its attractiveness. This study is in line with recent literature where the concept of place identity is being replaced by sense of place, which provides an holistic view of a place by integrating all users’ experiences and feelings. Through a qualitative study involving 31 individual interviews with users and meetings with managers of a French coastal area, this paper proposes a five-dimensional definition of sense of place and its use as a tool for developing a place brand in 3 ways: defining the place brand concept, bringing together the internal stakeholders and invoving users in brand building.     

The Brand Personality of Nonprofit Organizations and the Influence of Monetary Incentives

This article contributes to the limited literatures on small- and medium-size enterprises (SMEs) and corporate social responsibility (CSR). Using an institutional theoretical framework, we analyzed fieldwork interviews with twenty SMEs and perspectives of 165 SME managers and workers in textiles, garment, and footwear industries, the most important wage-earning sector in Vietnam. Having understood in the context of a developing “market economy with socialist orientation” (thus a “Southern perspective”), we find that socially responsible practices and expectations developed long before the arrival of CSR as a western concept and an MNC agenda. While identifying and contributing ideas concerning forms of “informal” CSR practices—influenced by social and cultural expectations—to the CSR/SME literature, we are conscious of the mixed effects of these practices and the ongoing nuanced negotiations between workers and managers in these SMEs. In our research, we found that it takes both domestic and international stakeholders to improve labor conditions in Vietnam under the banner of CSR.     

The impact of regulatory focus on adolescents’ evaluation of targeted advertising on social networking sites

This article examines whether individual differences in chronic regulatory focus (prevention vs. promotion focus) among adolescents influences the way they evaluate targeted advertising on social networking sites. Study 1 (survey) reveals that adolescents with a promotion focus (who are oriented toward achieving positive outcomes) have a more positive attitude and a higher purchase intention toward targeted advertising, as compared to prevention-focused adolescents (who are dispositioned toward avoiding negative outcomes). Study 2 (experiment) investigates how adolescents’ chronic regulatory focus can alter their attitude and purchase intention on a mock social networking site that includes a targeted advertisement. Results show that a low personalized targeted ad is better evaluated (in terms of a more positive attitude and higher purchase intention) among prevention-focused adolescents, whereas a high personalized targeted ad results in better advertising outcomes among promotion-focused adolescents. Contributions to theory and implications for advertising practice are discussed.     

Disutility of pollution and endogenous growth

Endogenous growth is generally built on a positive externality hypothesis which is the opposite of a negative externality caused by pollution. We study a linear technology with simple assumption: an aggregate capital stock which represents a learning by doing effect and a pollution flow proportional to production. In this framework, we analyse the precise effects on growth of the disutility of pollution and its interaction with the utility of consumption in an economy without abatement technology. The decentralized equilibrium always leads to unlimited growth, but optimal growth is often limited (the negative effect of pollution dominating the positive effect of learning by doing). In this case, the optimal policy which leads the decentralized economy to follow the optimal growth path is to tax capital; in contrast with the optimal subsidy policy in an economy without pollution. When an abatement technology is introduced, the optimal solution can lead the economy to unlimited growth, whatever the form of the utility function.     

A Discriminatory Mechanism to Reduce Urban Congestion

In this article, we propose an optimal mechanism to reduce congestion when information is asymmetric. Each car driver receives a quantity of traffic rights such that his adjusted marginal benefit is equal to the marginal cost of congestion and payments are based on willingness to pay. We show that the level of congestion achieved is lower and each car user can receive more or fewer rights than under complete information. With symmetric beliefs, the payment rule results from a second‐degree price discrimination. When beliefs are asymmetric, it results simultaneously from a second‐degree price discrimination and from a third‐degree price discrimination and high willingness‐to‐pay car users are discriminated against. The revenue raised can be used to reduce distortionary taxes, thereby gaining public acceptability.     

Social choice and electoral competition in the general spatial model

This paper extends the theory of the core, the uncovered set, and the related undominated set to a general set of alternatives and an arbitrary measure space of voters. We investigate the properties of social preferences generated by simple games; we extend results on generic emptiness of the core; we prove the general nonemptiness of the uncovered and undominated sets; and we prove the upper hemicontinuity of these correspondences when the voters’ preferences are such that the core is nonempty and externally stable. Finally, we give conditions under which the undominated set is lower hemicontinuous.