Implementing just and efficient decision-making

In an economy with one public good, one private good and quasi-linear utilities we explore decision-making mechanisms to non-cooperatively implement an efficient outcome. By auctioning the leadership role among agents, one implements egalitarianism, namely the efficient outcome that distributes equally the surplus available from an a priori given status quo. A refinement of this mechanism (so-called autioning the leadership with differentiated buds) allows us to implement an efficient anonymous and neutral outcome: it achieves egalitarianism above the Vickrey-Clarke-Groves decision.     

The productivity payoff of information technology in multimarket SMEs

This paper examines the effects of information technology (IT) adoption on the productivity of multimarket small and medium-sized enterprises (SMEs). The main hypothesis is that IT usage increases efficiency to a higher degree in diversified and internationalized firms compared with single-market SMEs. This hypothesis is tested using a large sample of more than 2,000 Spanish SMEs. Overall, intensive use of IT in operations processes is found to be associated with substantial increases in productivity of firms following both related and unrelated diversification. Also, exporting firms with more intensive use of IT have higher productivity. These results are consistent with previous theoretical arguments on the relationship between IT and efficiency of firms and open future research directions related to the role played by IT in the management control systems of both diversified and exporting firms.     

A quantitative analysis of authors,schools and themes in virtue ethics articles in business ethics and management journals (1980–2011)

Virtue ethics is generally recognized as one of the three major schools of ethics, but is often waylaid by utilitarianism and deontology in business and management literature. EBSCO and ABI databases were used to look for articles in the Journal of Citation Reports publications between 1980 and 2011 containing the keywords ‘virtue ethics’, ‘virtue theory’, or ‘virtuousness’ in the abstract and ‘business’ or ‘management’ in the text. The search was refined to draw lists of the most prolific authors, the most cited authors, the most cited articles, and the journals with the most virtue ethics publications. This information allows one to chart how virtue ethics articles have evolved through the decades and to establish ‘schools’ or clusters of authors as well as clusters of themes. The results of this quantitative analysis of authors, ‘schools’, themes, and publications provide a foundation for the future study of virtue ethics in business and management, identifying its achievements and potentials.     

Engagement-Based Loyalty: The Effects of Social Media Engagement on Customer Loyalty in the Travel Industry

In this article, we investigate the relation between customer loyalty and social media engagement. Two dimensions of customer loyalty are considered: affective and conative loyalty. We distinguish two forms of social media engagement: consuming of social media (passive engagement) and contribution to social media (active engagement). In a survey among 1,050 customers of a travel agency, the level of engagement of customers with the company’s social media activities is measured in relation to their degree of loyalty. Results show a partial positive relationship between social media engagement and customer loyalty: only consuming social media is directly related to affective loyalty.     

On optimal steady states of n-sector growth models when utility is discounted

This paper contains results on local and global stability of n-sector growth models when utility is discounted mostly for small rates of discount. It is well known that when future utility is not discounted one can prove precise results about optimal steady states (OSS's) under fairly general assumptions. In particular, existence, uniqueness, and turnpike properties have been established by several authors. The counter examples presented by Kurz, Sutherland, and Weitzman, however, show that when utility is discounted, additional assumptions are required to obtain turnpike results. In general, it would be interesting to know how the submanifolds of stability change as δ changes. One hopes that certain conditions on the utility function would be sufficient to “classify” the submanifolds of stability and instability. Such a question is apparently very difficult to answer, but we think that the results obtained here will help in this task.The proof that the turnpike theorem holds for discount factors near one is divided in two parts. First, we prove that optimal paths “visit” neighborhoods of the modified OSS's. Then, we prove that local stability holds for such neighborhoods.In order to show this fact, we must prove that the local “stable manifold” varies continuously with the discount factor. This roundabout method is necessary since our problem is similar to proving uniform continuity with respect to a parameter of solutions of a differential equation in a noncompact interval of time.Other problems analyzed here include uniqueness and continuity of OSS's. We also discuss the relation between the saddle-point property and the local stability of infinite horizon optimal growth paths.     

Variance and skew risk premiums for the volatility market: The VIX evidence

We extract variance and skew risk premiums from volatility derivatives in a model-free way and analyze their relationships along with volatility index and equity index returns. These risk premiums can be synthesized through option trading strategies. Using a time series of option prices on the VIX, we find that variance swap excess return can be partially explained by volatility index and equity index excess returns while these latter variables carry little information for the skew swap excess return. The results sharply contrast with those obtained for the equity index option market underlining very specific characteristics of the volatility derivative market.     

Renegotiation in Public–Private Partnerships: An Incentive Mechanism Approach

Game theory is an important analytical tool for measuring problems caused by behaviors that deviate from contractual ethics. However, the PPP literature still does little to explore this research topic. This paper analyzes and improves the equilibrium conditions of a renegotiation model of PPPs by introducing the asymmetry of information in the contract. To achieve this goal, the Mechanism Design Theory is used to demonstrate how the correct tracking of the investor directly influences the payoffs of the renegotiation. The study concludes that the lack of incentive constraints in the bidding document, as an ex ante condition, does not provide sufficient information on investor management capability. In this way, this information is only revealed in the renegotiation phase. Consequently, this contract failure results in high political costs to the government due to excessive subsidies.     

Time Pressure and Time Planning in Explaining Advertising Avoidance Behavior

Watching television advertising can represent a significant decision in time allocation. Those who avoid advertising represent a threat to advertisers and to television companies who depend upon advertising revenue. Two factors central to time allocation theory are identified as relevant to an understanding of television advertising avoidance behavior: time pressure and time planning. Drawing from Reactance theory, their significance in predicting two different types of avoidance, mechanical and behavioral, is examined empirically. As attitudes to time allocation are culturally and contextually dependent, two studies are reported, one in the UNITED KINGDOM, the other in Chile. In the former, time planning is a significant predictor of mechanical avoidance, in the latter behavioral avoidance is predicted by time pressure. The theoretical and practical implications of the findings are discussed.     

El efecto Harrod-Balassa-Samuelson El caso de México

This paper discusses the Harrod-Balassa-Samuelson (HBS) effect in Mexico during the period 1970-2009. In so doing, we use an econometric model that incorporates structural changes. The results achieved in this research suggest that the HBS effect does not hold in the case of Mexico and the United States during this period, and thus it was not statistically corroborated that the different rates of productivity growth in the tradable and non tradable goods between these countries affected the real exchange rate.