An experiment on learning with limited information: nonconvergence, experimentation cascades, and the advantage of being slow

We present the results of an experiment on learning in a continuous-time low-information setting. For a dominance solvable version of a Cournot oligopoly with differentiated products, we find little evidence of convergence to the Nash equilibrium. In an asynchronous setting, characterized by players updating their strategies at different frequencies, play tends toward the Stackelberg outcome which favors the slower player. Convergence is significantly more robust for a “serial cost sharing” game, which satisfies a stronger solution concept of overwhelmed solvability. As the number of players grows, this improved convergence tends to diminish, seemingly driven by frequent and highly structured experimentation by players leading to a cascading effect in which experimentation by one player induces experimentation by others. These results have implications both for traditional oligopoly competition and for a wide variety of strategic situations arising on the Internet.     

Costly State Verification with Varying Risk Preferences and Liability

Abstract.  In the scenario of loan contracts with costly state verification, we examine how the properties of the set of states, different risk preferences of debtors and varying liability of lenders affect the structure of optimal repayments. In particular, we show that with risk‐averse debtors, a general set of states, a constant observation cost and both unlimited and limited lender liability, the debtor is strictly better off revealing the true state of nature when his realized revenue is low, which implies that optimal debtor consumption has a downward jump around the single switch from observed to unobserved states. If the debtor can destroy revenue or if the debtor is risk neutral, this non‐monotonicity of consumption disappears. Moreover, given the loan size, there is more monitoring under debtor‐risk aversion than risk neutrality. We present simulations showing that a contract with unlimited lender liability and debtor‐risk aversion has a higher expected observation cost but a lower variance of consumption than a contract with limited lender liability. Finally, we discuss the problems of commitment to verification and contract renegotiation in this framework.     

Local tourism value chain linkages as pro-poor tools for regional development in western Uganda

Building on the model of Meyer [(2007). Pro-Poor tourism: from leakages to linkages. A conceptual framework for creating linkages between the accommodation sector and ‘poor’ neighbouring communities. Current Issues in Tourism 10(6), 558–83], this paper focuses on the regional development potential of local linkages with the supply chain and community partnerships of established tourism businesses in western Uganda. Results show that supply-related inconsistencies of local produce undermine the existence of supply chain linkages with local farmers, and favour business linkages with local intermediary suppliers, dominantly shaping the regional development potential of supply chain linkages in western Uganda. Yet, this research found several ‘windows of opportunity’ for local suppliers to connect to the tourism value chain. Results on community partnerships suggest that most businesses do not move beyond the absolute minimum partnership intensity that is required to be able to strategically use for marketing purposes and obtain a unique selling proposition. Finally, our research exposes the complexity of locating responsibility among different stakeholders of the value chain in suggested paths for (regional) development.     

Bank lending and the stock market's response to monetary policy shocks

This paper explores whether a limited participation model modified to include features of the bank lending channel can account for the empirically observed reaction of stock market returns to monetary policy shocks. When calibrated to match characteristics of US data, the model generates responses that broadly match the empirical counterparts. The results also suggest, that the higher exposure of bank-dependent firms to liquidity shocks generates substantial heterogeneity of the responses across firms.     

Attracting private sector participation in infrastructure investment: the UK case

This article examines the potential for private sector organizations to contribute to public sector innovation. Specifically, the study explores how partnering with the private sector can go beyond delivery and extend to development of new services and new markets. The term ‘commercialization partnership’ is coined for such partnerships and the article describes an exploratory investigation of this emerging form of innovation.     

Public and Private Partnerships for Sustainable Development in Africa: A Process Framework

This study examines the dynamic process through which public/private partnerships result in innovative business models and strategies associated with sustainable development. Using inductive theory building on twelve longitudinal case studies of companies operating in Kenya, Tanzania, South Africa, and Egypt, I trace a comprehensive and cyclical three-phase, multilevel process by which private and public actors develop, leverage, and manage strategic partnerships through the cognitive adjustment of mental models, the development of close relationships, and the collaborative crafting of alternative approaches to operating that result in simultaneous social, ecological, and economic value creation.     

Coming to Terms with Accountability

Abstract

In this article, we develop a theoretical argument that leads to a more optimistic outlook on the present state of accountability. By combining the different forums and functions of accountability in a multidimensional manner, the possibilities to hold power to account may be larger than often assumed. The main reason is that functions no longer depend on the well-functioning of a single forum and each forum serves multiple functions. In order to study accountability on a more systematic basis, we urgently need a solid conceptual framework. We aim to contribute to this much wanted coming to terms with accountability.     

Do industries contain predictive information for the Fama–French factors?

We examine whether the returns of US industry portfolios predict the returns and volatility of Fama and French's small-minus-big (SMB) and high-minus-low (HML) factors. The analysis reveals that all 30 industry returns strongly forecast one-month-ahead SMB factor returns. Moreover, a significant number of industry returns predict the volatility of the SMB and HML factors by up to two or three months. These findings suggest that US industry returns contain profitable information on Fama–French SMB and HML factors, and since most investors cannot extract the profitable information contained in industry returns in a timely manner, this information gradually diffuses in equity markets.     

城市公用事业特许经营 相关问题比较研究

推行特许经营是深化我国城市公用事业市场化改革的一个重要内容。本文在讨论特许经营渊源和实质的基础上,对城市公用事业特许经营与商业特许经营、行政许可、政府购买服务、公私合作（PPP）等相关问题作了比较研究,探讨了它们之间的联系和区别,便于人们准确把握城市公用事业特许经营的内涵和特点,为有效推进城市公用事业特许经营提供理论基础。