Tent City: Patterns of Informality and the Partitioning of Sacramento

Unsanctioned tent cities are increasing in number in cities throughout the western United States. Scholars explain the phenomenon as homeless people asserting their ‘right to the city’ or as ‘managed marginality’. These explanations capture much of the socio-political relationship between local government and homeless populations, but do not explain the long-term persistence of tent cities and the fluctuating nature of their visibility. A spatial history of informal encampments in Sacramento at three key moments—the founding of the city, the Great Depression and the Great Recession—reveals a long-term ebb and flow of tent cities occupying close-to-the-center, urban vacancies. Urban vacancies arise from the partitioning of the city into specific purposes, places and people, a taken-for-granted perception of how cities should be. The visibility of tent cities disrupts this aesthetic notion of stability and growth as homeless people use the tent to protest their isolation and exclusion.     

Competition and market power in option demand markets

We call markets in which intermediaries sell networks of suppliers to consumers who are uncertain about their needs "option demand markets." In these markets, suppliers may grant the intermediaries discounts in order to be admitted to their networks. We derive a measure of each supplier's market power within the network; the measure is based on the additional ex ante expected utility consumers obtain from the supplier's inclusion. We empirically validate the WTP measure by considering managed care purchases of hospital services in the San Diego market. Finally, we present three applications, including an analysis of hospital mergers in San Diego.     

Student Perceptions of the Insurance Profession

To attract students to the risk management and insurance profession, strategies need to be developed to overcome biases in their perceptions of the profession. This study attempts to determine some of those perceptions of students—specifically a group of business career high school students and a group of college students enrolled in an introduction to business course—about the personality traits of insurance professionals. A Personality Factor Questionnaire previously used extensively in other research was used to measure differences in student perceptions of personality profiles of different professions. We also measured how student characteristics such as age, sex, and expected college major influence student perceptions of these traits. The overall general conclusion was that perceptions of the profession are not as negative as many imagine, but do require some substantive work to improve, even among students seeking business careers.     

The Emergence of Second‐Tier Auditors in the US: Evidence from Investor Perceptions of Financial Reporting Credibility

We examine changes in the association between auditor type (Big 4, Second‐Tier, and Other non‐Big 4) and perceived financial reporting credibility in the wake of events (e.g., Andersen's failure, the implementation of SOX, creation of the PCAOB, etc.) which led to significant growth in Second‐Tier client portfolios and increased scrutiny of Second‐Tier audit practices. Our results reveal that financial reporting credibility of Second‐Tier clients was lower than that of Big 4 clients and was indistinguishable from that of Other non‐Big 4 clients pre‐Andersen. However, post‐Andersen, we find that financial reporting credibility of Second‐Tier clients is higher than that of Other non‐Big 4 clients and is indistinguishable from that of Big 4 clients. We expect that our results will be of interest to regulators, both in the United States and in the European Union, who have expressed concerns about the current state of competition in the audit market, management and boards of directors that are contemplating switching to a Second‐Tier audit firm, and academics investigating quality differences among audit firm types.     

NONRESIDENT POSTSECONDARY ENROLLMENT GROWTH AND THE OUTCOMES OF IN‐STATE STUDENTS

We study the effects of exposure to nonresident students on the outcomes of undergraduate in‐state students during a period of high nonresident enrollment growth at the University of Missouri‐Columbia. Our models leverage within‐major, cross‐time variation in nonresident exposure for identification. We find no evidence that increased exposure to domestic nonresidents affects in‐state student outcomes and our null results are precisely estimated. We find evidence of modest negative impacts on in‐state students when their exposure to foreign students increases using our preferred specification. However, the identifying variation in exposure to foreign students in our data is limited and this result is not robust in all of our models. (JEL I23, I28, R23)     

Paymasters and Assurance Providers: Exploring Firms’ Discretion in Selecting Non-financial Auditors

Journal of Business Ethics - Ethical issues in non-financial auditing are increasingly under scrutiny and questions have been raised about the impartiality and independence of audits. Among many...     

A Heuristic Model for Establishing Trade-Offs in Corporate Sustainability Performance Measurement Systems

Consumer trust is a key prerequisite for establishing a market for credence goods, such as “green” products, especially when they are premium priced. This article reports research on exactly how, and how much, trust influences consumer decisions to buy new green products. It identifies consumer trust as a distinct volition factor influencing the likelihood that consumers will act on green intentions and strongly emphasizes the needs to manage consumer trust as a prerequisite for the development of a market for green products. Specifically, based on a mixture of qualitative and quantitative methods, it is found that lack of consumer trust is a barrier for the development of a market for organic food in Thailand. Two focus groups and ten in-depth interviews revealed low knowledge about and low trust in organic food, certification, control, and labeling. Further, a mall-intercept survey (N = 177) revealed that lack of (especially) system trust reduces consumer expectations about benefits of buying organic food, and it makes them less likely to buy organic food. Mistrust in the control system and in the authenticity of food sold as organic has a significant negative impact on self-reported buying behavior. Implications for policy and future research are discussed.     

Race and gender effects on employer interest in job applicants: new evidence from a resume field experiment

We sent nearly 9000 fictitious resumes to advertisements for job openings in seven major cities in the United States across six occupational categories. We randomly assigned names to the resumes that convey race and gender but for which a strong socio-economic connotation is not implicated. We find little evidence of systematic employer preferences for applicants from particular race and gender groups.     

Factors predicting attitude toward disclosing personal data online

To test a theoretical model, this study explores the effect of anxiety, trust, personality, and perceived benefits on the disclosure of personal information online. An online survey conducted among participants in the United States (n = 248, age range: 20–82 years) examined attitudes toward disclosing personal data online. Specifically, the study researches the impact of anxiety disclosing personal data, trust (both in the Internet and in institutions), the Big Five personality traits, and four sets of perceived shopping benefits (opportunity, bargain, purchase, and expected privacy benefits) in e-commerce disclosure and their role as antecedents for adoption and use of e-commerce. The study aligns with existing trust literature and corroborates other findings on how perceived purchase benefits impact individuals’ attitudes toward disclosing personal data online. The data suggest that both trust in the Internet and trust in institutions positively influence attitude toward disclosing personal data online. Perceived purchase benefits were also significant positive predictors for attitude toward disclosing personal data online. Furthermore, personality dimensions can affect attitude toward disclosing: the more neurotic a person is, the more negative their attitude is about disclosing personal data online. The study underscores that consumers have a responsibility to educate themselves about online disclosure and marketing practices, and about how to protect their online privacy. Most importantly, fostering trust, reducing anxiety, and promoting benefits are essential to the future of e-commerce. Implications for theory, consumers, marketing practice, and public policy are also discussed.     

HIGH SCHOOLS AND STUDENTS' INITIAL COLLEGES AND MAJORS

We use statewide administrative data from Missouri to examine the explanatory power of high schools over student sorting to colleges and majors at 4‐year public universities. We develop a “preparation and persistence index” (PPI) for each university‐by‐major cell in the Missouri system that captures dimensions of selectivity and rigor and allows for a detailed investigation of sorting. Our analysis shows that students' high schools predict the quality of the initial university, as measured by PPI, conditional on their own academic preparation, and that students from lower–socioeconomic status high schools systematically enroll at lower‐PPI universities. However, high schools offer little explanatory power over major placements within universities. (JEL I2, J1)