Measuring Consumer Perceptions of Procedural Justice in a Complaint Context

The idea of procedural justice as perceived by consumers has not been explored in the consumer behavior literature, although there has been some mention of consumer perceptions of fair treatment. This article describes the development of a scale using procedural justice as its theoretic base to measure consumers' perceptions of fair treatment when they complain. Results indicate that consumers make a distinction between the complaint process and the outcome of their complaint, indicating that procedural justice has further research potential. In addition, the proposed scale possesses the psychometric properties of an acceptable scale.     

Consumer Satisfaction with a Managed Health Care Plan

This study estimates the effects of four categories of variables hypothesized to influence patient satisfaction with a managed care health benefits plan. Ordinal probit is used to include the full spectrum of information available on the satisfaction measure. Results indicate that personal experience, expectations, and judgments about services covered influence overall satisfaction with the plan. Individual differences have little effect on satisfaction.     

LOST IN TRANSLATION? TEACHER TRAINING AND OUTCOMES IN HIGH SCHOOL ECONOMICS CLASSES

Using data from a 2006 survey of California high school economics classes, we assess the effects of teacher characteristics on student achievement. We estimate value‐added models of outcomes on multiple choice and essay exams, with matched classroom pairs for each teacher enabling random‐effects and fixed‐effects estimation. The results show a substantial impact of specialized teacher experience and college‐level coursework in economics. However, the latter is associated with higher scores on the multiple‐choice test and lower scores on the essay test, suggesting that a portion of teachers' content knowledge may be “lost in translation” when conveyed to their students. (JEL A21, I21)     

A review of: “APPLIED ECONOMIC ANALYSIS FOR TECHNOLOGISTS,ENGINEERS, AND MANAGERS ” BY MICHAEL S. BOWMAN Prentice-Hall,Inc., Upper Saddle River,New Jersey, 1999, xii + 561 pp., ISBN: 0-13-375932-6, List: $76.75.

In their recent paper Tang and Tang (2003 Tang, S. L. and Tang, H. J. 2003. The variable financial indicator IRR and the constant economic indicator NPV.. The Engineering Economist, Vol. 48(No. 1): pp. 69–78. [Taylor &; Francis Online] , [Google Scholar], pp. 69–78) revive a longstanding controversy—net present value (NPV) versus internal rate of return (IRR)—by characterizing the NPV as an economic indicator and the IRR as a financial one. The paper implies that this distinction justifies ranking financial alternatives by ranking their IRRs. In the current article, it is argued that the direct IRR ranking does not necessarily provide the same evaluation environment—and therefore a fair comparison—for each alternative involved, and that the incremental ranking approach is needed to remedy this shortcoming. The article also points out that Tang and Tang's numerical examples of simple projects with one sign change in their cash flow patterns do not address the problem of multiple IRRs, which consequently renders Tang and Tang's ranking approach dysfunctional. It is demonstrated that the concept of a true rate of return, substituting for the non-performing IRR and applied in conjunction with the incremental approach, provides an adequate tool for ranking mutually exclusive projects or a project's technical or financial alternatives.     

So You Want to Be an Expert Witness?

This commentary gives an insider's view of an expert witness experience, followed by attorney Seth Richard Lesser's response with some of the rules of the expert witness road and what anyone needs to expect if planning to take on expert work.     

Retail Demand for Meat in Australia: A Utility Theory Approach*

This paper examines Australian retail demand for meat for the post-war period 1949-50 to 1978-79. Several systems of demand equations are estimated, each system (comprising equations for beef, mutton, lamb, pork and chicken) being derived from an underlying static utility function. Model selection procedures are used to determine the preferred specifications). The validity of the utility theory approach is investigated by: testing for the presence of autocorrelation; examining the monotonicity and convexity properties of the utility functions; and comparing the estimated price and expenditure elasticities with those of other Australian studies. Serial correlation does arise as a problem, but other results provide support for the theory.     

Dissatisfied Consumers: Who Gets Upset and Who Takes Action

Past studies of dissatisfied consumers have either examined what kinds of people get upset about business practices or what kinds of people complain about the way they have been treated in the marketplace. This article develops a new profile of the dissatisfied consumer by considering not only who gets upset about business practices, but also what they do about it. This profile appears more complete than profiles presented in earlier studies. Several important conclusions are offered concerning the nature of consumer dissatisfaction and consumer policy.