WHO WANTS PATERNALISM?

Little is known about the demand side of paternalism. We investigate attitudes towards paternalism among Danish students. The main question is whether demand for paternalism is related to self‐control, either because people with self‐control problems seek commitment devices to overcome these problems, or because people with good self‐control want those who lack it to change their behaviours. We find no evidence linking self‐control to attitudes towards weak forms of paternalism (e.g., nudges or information about health consequences). But respondents with good self‐control are significantly more favourable towards strong paternalism (e.g., restricting choices or sin taxes) than those struggling with self‐control.     

Volume and Volatility Surrounding Quarterly Redesignation of the Lead S&P 500 Futures Contract

During the last weeks before each quarterly expiration of Standard & Poor's (S&P) 500 futures, the bulk of trading volume begins to shift away from the next‐to‐expire (nearby or lead) contract toward the second‐to‐expire (next out) contract. At some point, the exchange formally redesignates the next out as the new lead contract, and the next out replaces the nearby in the futures pit location designated for the lead contract. This event invariably results in a dramatic increase (decrease) in trading activity in the next out (nearby) contract. This shift in relative trading volumes is due to the microstructure of the futures exchange rather than new information or underlying volatility conditions. The event thus offers us an opportunity to examine how volatility responds to noninformation‐based exogenous changes in volume. This study examines the volatility behavior of nearby and next out S&P 500 futures contracts on the 10 days surrounding quarterly redesignation of the lead contract. Our model measures possible changes in (a) the level of volatility and/or (b) the association between volume and volatility after redesignation of the lead contract. Results indicate that when we account for the association between volume and volatility, the higher volume lead contract consistently experiences a lower level of volatility. This outcome supports the view that the larger population of liquidity providers who trade the more active lead contract fosters greater market depth and lower volatility. © 2001 John Wiley & Sons, Inc. Jrl Fut Mark 21:1119–1149, 2001     

Internationalization strategies of EU and Asia–Pacific low fare airlines

We employ Dunning’s eclectic paradigm (OLI) to shed light onto low fare airlines’ internationalization strategies. In addition to 31 European low fare airlines, we also analyze the internationalization strategies of 41 low cost carriers in the Asia–Pacific region. The results indicate that homogenous groups of such airlines emerge with regard to their internationalization strategies and that capital and ownership structure as well as relative timing is especially closely related to low fare airline’s entry modal choice. We discuss inferences for the use of the OLI paradigm in further studies of airline internationalization.     

Regional Economic Impacts of the World-Wide Recession: A Case Study of Hampton Roads, Virginia

Defense spending accounts for more than 45 percent of all economic activity in the Hampton Roads, Virginia metropolitan region (population 1.67 million and gross regional product $81 billion annually). Between 2008 and 2010, this was highly advantageous. Not only did defense spending double during the decade, but also it increased by about five percent annually during the recession. This buffered the region from extensive recession damage. Hence, in November 2010, the regional unemployment rate was only 7.0 percent, while it was 9.8 percent nationally. However, this scenario has begun to reverse itself. The growth in defense spending has come to a halt and almost surely will decline in the years ahead. Difficult times are on the horizon for Hampton Roads.     

The Consistency of Merger Decisions at the South African Competition Commission

The South African Competition Commission's merger decisions for fiscal year (FY) 2002 through FY2009 are analysed to empirically identify the factors historically influencing prohibition, conditional approval and unconditional approval, as well as the factors historically influencing whether merger applications are deemed non‐complex, complex or very complex. The focus of the analysis is on whether or not the historical process has remained consistent through time, and whether or not that process can be obviously linked to the provisions of the 1998 Competition Act. Initial results point to behaviour that is not consistent over the time period considered; however, those inconsistencies are removed, once additional measures of market contestibility, associated with the 1998 Competition Act are included in the analysis. The final results suggest that the commission is less likely to approve mergers that they link to markets that are less contestable. In addition to protecting competition, the commission is simultaneously protecting other public interests. Therefore, our research supports the hypothesis that the commission consistently applies its legislative remit.     

Wertorientierte Steuerung von Versicherungsunternehmen im Lichte des normativen Managements

The values, standards and ?pictures“ defined by normative management determine the fundamental conditions to a substantial extent, eventually leading to the choice of the appropriate management approach. Two fundamentally distinct leadership models are available:

• — the constructivistic-technomorphe approach, e. g. in the specific shape of value orientation and
• — the systemic-evolutionary approach, e. g. in the shape of system-oriented management.

Investigations of corporate biographies support the assumption that aspects of the systemic-evolutionary management approach tend to be more suitable to lead corporations to a successful development. This does not necessarily imply that value orientated management is not applicable. However, a comprehensive tailor made combination of various leadership models to meet specific demands of the insurance industry seems to be advisable.     

Dynamic modelling of water demand, water availability and adaptation strategies for power plants to global change

According to the latest IPCC reports, the frequency of hot and dry periods will increase in many regions of the world in the future. For power plant operators, the increasing possibility of water shortages is an important challenge that they have to face. Shortages of electricity due to water shortages could have an influence on industries as well as on private households. Climate change impact analyses must analyse the climate effects on power plants and possible adaptation strategies for the power generation sector. Power plants have lifetimes of several decades. Their water demand changes with climate parameters in the short- and medium-term. In the long-term, the water demand will change as old units are phased out and new generating units appear in their place.In this paper, we describe the integration of functions for the calculation of the water demand of power plants into a water resources management model. Also included are both short-term reactive and long-term planned adaptation. This integration allows us to simulate the interconnection between the water demand of power plants and water resources management, i.e. water availability. Economic evaluation functions for water shortages are also integrated into the water resources management model. This coupled model enables us to analyse scenarios of socio-economic and climate change, as well as the effects of water management actions.     

Organizational design in public procurement: A stakeholder approach

Organizing the purchasing function for public bodies and other non-profit and/or non-market bodies starts with the selection of an appropriate organizational strategy. In order to be able to select between generic strategies like low cost and differentiator or strategies described as operational excellence, customer intimacy and product leadership, a stakeholder based model was used. The selected strategy forms the basis to design the nature of three organizational elements: policies (P), organization (O) and processes (P). The aspect system of the purchasing function and the sub-system of the purchasing department reflect the nature of these three POP elements. It helps to translate the selected organizational strategy into a appropriate supplier strategy and clarifies the idealized mix of suppliers in terms of portfolio archetypes. Ten policy aspects of purchasing and four organizational aspects are described to redesign purchasing.