STRATEGIC BEHAVIORS TOWARD ENVIRONMENTAL REGULATION: A CASE OF TRUCKING INDUSTRY

We used trucking industry’s response to the U.S. Environmental Protection Agency’s acceleration of 2004 diesel emissions standards as a case study to examine the importance of accounting for regulatees’ strategic behaviors in drafting of environmental regulations. Our analysis of the time series data of aggregate U.S. and Canada heavy‐duty truck production data from 1992 through 2003 found that heavy‐duty trucks production increased by 20%–23% in the 6 mo prior to the date of compliance. The increases might be due to truck operators pre‐buying trucks with less expensive but noncompliant engines and behaving strategically in anticipation of other uncertainties. (JEL L51, Q25)     

South Korea's Record Wage Rates: Labor in Late. Industrialization

Despite "unlimited labor" and political repression, real average wages in South Korea have risen rapidly, possibly faster than in any previous industrialization—including Japan's—or in any contemporary one. This study suggests that the process of industrializing late though learning, which has been especially intense in Korea, coupled with that country's special institutions, underlie the spectacular wages increases. The analysis also highlights the unique skill-set of late industrialization that high wages reward.     

CHINA'S RESISTANCE TO ECONOMIC REFORMS

After 10 years of institutional and structural change, expanded economic activity, and subsequent economic difficulties, China adopted an austerity program in 1988. Underlying the ostensible economic reasons for the austerity program, however, was growing political resistance to economic reforms among Communist party members.
This paper puts forth two explanations. One is that the leadership misunderstands the market system, and this leads to errors in economic policy. The second explanation is that rent seeking by strategically situated groups is responsible for much of the resistance.
Because market-oriented reform makes redundant both bureaucrats and job slots for apparatchik appointments, strong resistance to reform exists at the micro level.
Two scenarios could lead to real economic reform: (i) gradual self-limitation by the Communist party as economic decline continues and as the costs of maintaining the existing system increase, or (ii) a breakdown of consensus within the ruling stratum. In this paper, the dual thesis for resistance to reform serves to reinforce the latter scenario.     

An Investigation of Decision‐Making Styles of Consumers in China

This study investigates Chinese consumers' decision‐making styles. The Consumer Style Inventory (CSI) is administered to 387 adult consumers in China. Both an exploratory factor analysis and a confirmatory factor analysis are adopted to validate the CSI inventory. This results in an eighteen‐item and seven‐factor solution. Findings indicate that five decision‐making styles are valid and reliable in Chinese culture: perfectionistic, novelty‐fashion conscious, recreational, price conscious, and confused by overchoice. Cluster analysis is employed to identify prominent market segments. Based on the findings, three segments are formed: trendy and perfectionistic consumer, traditional and pragmatic consumer, as well as confused by overchoice consumer. Marketing and management implications are discussed.     

Unions and Discriminatory Hiring: Evidence from New Zealand

This study examines the effects of unions on employer compliance with antidiscrimination legislation in New Zealand, using a sample of 227 employers. The results do indicate that unions do reduce discriminatory practices. More specifically, higher levels of unionization do increase the level of employer compliance. However, other union characteristics, such as union size and strike propensity, appeared to have no influence on employer practice.     

An Emerging Model for Purchase and Consumption of Non-Prescription Drugs

This paper presents the results of exploratory surveys which describe the behavior of the buyer and consumer of over-the-counter (OTC) drugs. The results are summarized in a simple decision model which describes the information search process under various conditions of symptom severity, user satisfaction and brand familiarity. Implications are discussed for regulating problem consumption. In particular, advertising and labeling regulations seem unlikely to reduce patterns of heavy usage observed in the research. Problems arising from the self medication process must be examined in a broader context of health care behavior.