Discovery and social learning in non-priced environments: An Austrian view of social network theory

Our purpose here is to engage in a cross-disciplinary discussion between Austrian economics and social network theory. In particular, we ask what role social networks play in the extended order in regard to both individual discovery and whether social networks can be the source of widespread unintended cooperation among individuals unknown to one another. Although Austrians have examined the function that market prices play in generating social cooperation, such discussions tend to steer clear of non-priced environments, such as interaction within social networks. We seek to explore this gap. While we acknowledge that non-price information feedback mechanisms such as status and reputation lack the calculability so crucial to market coordination, we argue that they can nonetheless mimic other important qualities of market prices and generate widespread unintended social cooperation among people unknown to one another. After a general discussion, we apply these ideas to online philanthropic communities.     

New development: Mutual solutions to shaping public service delivery

There have been a number of developments in approaches to public service delivery in the UK, partly as a response to austerity measures, as well as a shift to new models of public sector, private and third sector provision. This article considers the development of public service mutuals—those organizations that have spun out of the public sector, and where employees of the new providers play a key role in shaping and delivering public services at local and national levels. The authors identify areas where further work is needed to better understand these new models and to consider whether the perceived benefits associated with traditional mutual models are applicable when applied to public service provision.     

A Global Analysis of Orientation,Coordination, and Flexibility in Supply Chains

Global supply chains are growing rapidly, and the ability to manage cross border logistics operations has become a necessity to maintain a competitive advantage in a dynamic environment. This research addresses current gaps in the literature by investigating the buyer–supplier integration dynamics in a global context with a focus on the antecedents and outcomes involved in the process. Empirical data from 320 U.S. based manufacturing companies that source from overseas was collected and used to test the framework. In addition to providing empirical evidence for the importance of orientation on collaboration, operational coordination, and integration this research explains how manufacturing companies can enhance the flexibility of their global suppliers and how that impact their logistics as well as overall firm performance. Managerial and research implications are provided as well as areas for future research.     

On the predictive power of monetary exchange rate model: the case of the Malaysian ringgit/US dollar rate

Despite anecdotal and survey evidence suggesting the presence of discrimination against customers in stores, restaurants and other small-transaction consumer markets, few studies exist that identify or quantify the nature of any unequal treatment. We provide evidence from a field study of wait times in Boston-area coffee shops that suggests that female customers wait an average of 20 seconds longer for their orders than do male customers even when controlling for gender differences in orders. We find that this differential in wait times is inverse to the proportion of employees who are female and directly related to how busy the coffee shop is at the time of the order. This supports the conclusion that the observed differential is driven at least in part by employee animus and/or statistical discrimination rather than unobserved heterogeneity in the purchasing behaviour of female customers.     

Dynamics of rice prices and agricultural wages in the Philippines

Rice trade liberalization in the Philippines should decrease domestic rice prices impacting both agricultural wages and the welfare of agricultural wage earners. This study examines the short-run and long-run relationship between rice prices and agricultural wages in the Philippines using a neoclassical wage determination model. Three empirical frameworks are used—a cointegration/error correction framework, which assumes nonstationary variables in long-run equilibrium, a first difference model that assumes nonstationary variables but no long-run equilibrium, and an OLS framework that assumes the model variables are stationary. Conclusions are reasonably robust across the three empirical frameworks with wages adjusting positively to rice price changes with a short-run elasticity of 0.29 to 0.57, and a long-run elasticity of 0.70 to 1.0 in preferred models. An analysis of welfare implications suggests that although households that are heavily reliant on agricultural wages for income will be adversely affected by rice price decreases, other households will benefit.