Regions of the Production Function,Returns, and Economies of Scale: A Reply

The author discusses a pedagogical strategy based on data visualization and analysis in the teaching of intermediate macroeconomics and financial economics. In these short projects, students collect and manipulate economic data from the online Federal Reserve Economic Database (FRED) in order to illustrate theoretical relationships discussed in class. All the data collection and manipulation tasks are conducted through the FRED Web site. The author argues that as students locate and effectively use the quantitative information that they need to evaluate abstract concepts, they are in effect developing the connection between theories and empirical evidence that underpins the discipline of economics.     

Spatial Models in Marketing

Marketing science models typically assume that responses of one entity (firm or consumer) are unrelated to responses of other entities. In contrast, models constructed using tools from spatial statistics allow for cross-sectional and longitudinal correlations among responses to be explicitly modeled by locating entities on some type of map. By generalizing the notion of a map to include demographic and psychometric representations, spatial models can capture a variety of effects (spatial lags, spatial autocorrelation, and spatial drift) that impact firm or consumer decision behavior. Marketing science applications of spatial models and important research opportunities are discussed. This paper is based upon the discussions of the Spatial Models in Marketing seminar at the Sixth Invitational Choice Symposium, June 2004. Eric T. Bradlow, Bart Bronnenberg and Gary J. Russell served as co-chairs of the session.     

Dynamics of Cooperation: At the Brink of Irrelevance*

abstract Alliances have become commonplace. This has led to a considerable number of academic and professional publications on alliances and, more recently, on the dynamics of cooperation. However, the body of knowledge on the dynamics of cooperation developed so far is characterized by fragmentation, lack of coherence and non‐comparable research output. There is no consensus on paradigmatic beliefs, which hampers theoretical progress. As a result, there is what we call an academic gap. Moreover, the literature on the dynamics of cooperation often studies research questions that are irrelevant to managers' needs. As a consequence, there is also a managerial relevance gap. The emergence of these two gaps is primarily due to the choice of assumptions, the emphasis on originality, and the use of a variety of methodological approaches. Nevertheless, we believe it is still possible to reverse the trend and make the literature on the dynamics of cooperation more relevant.     

The use of multi-criteria decision-making methods in the integrated assessment of climate change: implications for IA practitioners

Integrated assessment (IA) considers interactions of physical, biological, and human systems in order to assess long-term consequences of environmental and energy policies such as limits on greenhouse gas emissions, and other strategies to negate climate change. Users of IA face the daunting task of interpreting large amounts of data and uncertainties. Multi-criteria decision-making (MCDM) methods can help users process IA data, understand policy tradeoffs, and learn how their value judgments affect decisions. We held a workshop during which climate change experts tested several MCDM methods for using IA outputs to rank hypothetical policies for abating greenhouse gas emissions. Participants also evaluated several methods for visualizing tradeoffs under both certainty and uncertainty cases. This paper explores potential roles for MCDM in IA identified during the workshop, along with implications for IA design and implementation. We summarize the workshops’ results regarding intertemporal discounting (a type of MCDM weighting judgment), visualization of impacts, how MCDM methods can help users to incorporate their background knowledge, and how MCDM can improve understanding of tradeoffs and the importance of value judgments. A key result is that the interest rates IA experts recommend for discounting future impacts depend strongly on what type of impact is being discounted, as well as upon the exact phrasing of questions used to elicit rates from the experts.     

Coming to America: work visas,international diversity,and organizational attractiveness among highly skilled Asian immigrants

Abstract

U.S. firms are increasingly seeking foreign workers to help satisfy growing demands for technical and highly skilled labor, and many immigrants continue to seek jobs in America. Despite this, few studies in the management discipline examine immigration issues as they relate to organizational attraction and recruitment. In an experimental study, we investigated the relationship between stated recruitment policies, perceived work-related expectancy, and organizational attractiveness among graduate students from Asia as potential job seekers to companies in the United States. We found a relationship between perceived work-related expectancy and either emphasizing international diversity or work visa sponsorship. However, emphasizing work visa sponsorship weakened the effect of international diversity on perceived work-related expectancy. Perceived work-related expectancy was also found to positively affect organizational attractiveness, resulting in a conditional indirect effect of international diversity statements on organizational attractiveness. Implications for organizations and directions for future research are discussed.     

A community of futurists and the state of the futures field

Criticisms of futures studies ought to be evaluated in comparison with those of other fields. For example, compared to the established disciplines, futures studies is less fragmented and has many positive features. Also, controversies among futurists do not mean that futures studies is not a field. Rather, one hallmark of any field of inquiry is that its members constitute a disputatious community. Moreover, futures studies is unified by interlinked and overlapping networks of communications and influences among futurists, a shared transdisciplinary matrix, and the growth of a futurist canon. The future of futures studies is bright, because it is reasonable to hope that futurists will be able to establish the field in most of the world’s colleges and universities.     

The Deal Structuring Stage of the Venture Capitalist Decision‐Making Process: Exploring Confidence and Control*

This exploratory study examines the deal structuring stage of the venture capitalist decision‐making process. Here, the primary issues of concern are investor confidence and potential control of a venture in relation to the level of financing the investor provides and the structure with which the funding is delivered. Confidence comes in support of the entrepreneur, the venture itself, or a combination of the two, prior to capital transfer, but after the initial “invest or not invest” decision has already occurred. Findings support a multicriteria perspective of the pre‐investment decision‐making process and a distinct difference between entrepreneur confidence and venture confidence in the deal structuring stage.     

Marketing externalities in industrial clusters: A literature review and evidence from the Christchurch,New Zealand electronics cluster

Literature on the internationalisation of small- and medium-sized firms identifies location in a geographic cluster of networked firms as a source of competitive advantage. In particular, local networks are cited as a source of market information and referrals that can help firms enter international markets. Co-location and the local interactions that it fosters create externalities that benefit entrepreneurial firms. This paper identifies four types of externalities: supply side, demand side, active, and passive. Supply and demand side refers to inputs to the firm and markets for outputs, respectively. Passive externalities occur simply because firms are co-located, while active externalities only occur because firms are co-located and work together in networks. Representatives of firms in the Christchurch, New Zealand electronics cluster were interviewed about the extent to which they perceive benefits from externalities. A statistical cluster analysis reveals two patterns of responses. Both groups of responses report benefiting from passive externalities. However, about 40% of the firms also benefit from active externalities. These firms are typically smaller and less export intense. The notion of active externalities has implications for the management of firms located in clusters. To benefit from active externalities, managers must develop capabilities that maximise network opportunities. There is also an implication for economic development policy: Resources should be targeted at encouraging active externalities rather than passive, as passive externalities occur without public intervention.