Towards a complete real-time electricity market design

The general design for the real-time electricity market presented in this paper optimizes and prices both real and reactive power simultaneously in an AC setting, where all assets—generation, load and transmission—are allowed to bid and are financially settled at the locational price times energy consumed or produced. The result is that transmission lines are compensated for both capacity and admittance, providing incentives for efficient operation of transmission-related assets such as FACTS devices, if price-taking behavior is assumed. Losses are incorporated into the design and become an operating cost for transmission. The market design is shown to be revenue neutral and, under some assumptions, nonconfiscatory.      

The Self-concept of Black and White Women: The Influences Upon Its Formation of Welfare Dependency, Work Effort, Family Networks, and Illnesses

Abstract . The concept of “self-efficacy” is used to test the hypothesis that the negative self-concept of welfare recipients coniributes to long term psychological and material dependency on such assistance. Self-efficacy focuses on the extent to which people are able to produce and regulate events in their lives and is associated with self-imposed performance expectations. The extent to which the minority status which Blacks occupy in this society decreases self efficacy relative to Whites is examined, using information generated from structured interviews with 290 low income Black and White women. Operationalizing the concept of self-efficacy with appropriate controls for socioeconomic status, family composition and other factors results in finding no racial differences in sense of self-efficacy between Black and White women. Observed differences in patterns of receipt of public assistance are found to be more directly related to the persistence of structural barriers to upward mobility that have differential impacts on Blacks and Whites. Long term receipt of public assistance is found to adversely affect both self-worth and work orientation/perceived efficacy for all women.     

Alliance competence, resources, and alliance success: Conceptualization, measurement, and initial test

This research examines the effect of an alliance competence on resource-based alliance success. The fundamental thesis guiding this research is that an alliance competence contributes to alliance success, both directly and through the acquisition and creation of resources. Using survey data gathered from 145 alliances, empirical tests of the hypotheses provide support for the posited explanation of alliance success. The findings indicate that an alliance competence is not only antecedent to the resources that are necessary for alliance success but also to alliance success itself. C. Jay Lambe (Ph.D., The Darden School at University of Virginia) is an assistant professor of marketing in the Pamplin College of Business at Virginia Tech. For 10 years prior to entering academe, he was engaged in business-to-business marketing for both Xerox and AT&T. His research interests include business-to-business marketing, relationship marketing, marketing strategy, and sales management. He has publications in theJournal of the Academy of Marketing Science, theJournal of Product Innovation Management, theEuropean Journal of Marketing, theJournal of Personal Selling and Sales Management, theInternational Journal of Management Reviews, theJournal of Business-to-Business Marketing, and theJournal of Relationship Marketing. He also serves as a reviewer for theJournal of Business-to-Business Marketing. Prior to joining the faculty at Virginia Tech, he was one of five Texas Tech University faculty members chosen in 1999 from the entire university for the annual Outstanding Faculty Member Award by the Mortar Board and Omicron Delta Kappa (Texas Tech University student organizations that recognize excellence in teaching). Robert E. Spekman is the Tayloe Murphy Professor of Business Administration at the Darden School at the University of Virginia. He was formerly a professor of marketing and associate director of the Center for Telecommunications at the University of Southern California. He is an internationally recognized authority on business-to-business marketing and strategic alliances. His consulting experiences range from marketing research and competitive analysis, to strategic market planning, supply chain management, channels of distribution design and implementation, and strategic partnering. He has taught in a number of executive programs in the United States, Canada, Latin America, Asia, and Europe. His executive program experience ranges from general marketing strategy, to sales force management, to channels strategy, to creating strategic alliances, to business-to-business marketing strategy, to a number of single-company and senior executive management programs. He has edited and/or written seven books and has authored (coauthored) more than 80 articles and papers. He also serves as a reviewer for a number of marketing and management journals, as well as for the National Science Foundation. Prior to joining the faculty at the University of Southern California, he taught in the College of Business at the University of Maryland, College Park. During his tenure at Maryland, he was granted the Most Distinguished Faculty Award by the MBA students on three separate occasions. Shelby D. Hunt is the J. B. Hoskins and P. W. Horn Professor of Marketing at Texas Tech University, Lubbock. A past editor of theJournal of Marketing (1985–87), he is the author ofModern Marketing Theory: Critical Issues in the Philosophy of Marketing Science (South-Western, 1991) andA General Theory of Competition: Resources, Competences, Productivity, Economic Growth (Sage, 2000). He has written numerous articles on competitive theory, macromarketing, ethics, channels of distribution, philosophy of science, and marketing theory. Three of hisJournal of Marketing articles—“The Nature and Scope of Marketing” (1976), “General Theories and Fundamental Explananda of Marketing” (1983), and “The Comparative Advantage Theory of Competition” (1995) (with Robert M. Morgan)—won the Harold H. Maynard Award for the best article on marketing theory. His 1985Journal of Business Research article with Lawrence B. Chonko, “Ethics and Marketing Management,” received the 2000 Elsevier Science Exceptional Quality and High Scholarly Impact award. His 1989 article, ”Reification and Realism in Marketing: in Defense of Reason,” won theJournal of Macromarketing Charles C. Slater Award. For his contributions to theory and science in marketing, he received the 1986 Paul D. Converse Award from the American Marketing Association, the 1987 Outstanding Marketing Educator Award from the Academy of Marketing Science, and the 1992 American Marketing Association/Richard D. Irwin Distinguished Marketing Educator Award.     

Book Reviews

Anthony J. Whitten, Sengli J. Damanik, Jazanul Anwar and Nazaruddin Hisyam, The Ecology of Sumatra, Yogyakarta: Gadjah Mada University Press, Second Edition, 1987, pp. 583 + xx.

Christine Drake, National Integration in Indonesia: Patterns and Policies, Honolulu: University of Hawaii Press, 1989, pp. 354 + xvi. Cloth: US$ 35.00.

Geoffrey B. Hainsworth (ed.), Environmental Linkages, Halifax: School for Resource and Environmental Studies, Dalhousie University, 1985, pp. 97.

R. Repetto et al., Wasting Assets: Natural Resources in the National Income Accounts, Washington DC: World Resources Institute, June 1989, pp. 69 + vi. Paper: US$10.00.

William E. James, Seiji Naya and Gerald M. Meier, Asian Development: Economic Success and Policy Lessons, Madison, Wisconsin: University of Wisconsin Press, 1989, pp. 281 + Xviii.

Robert B. Dickie and Thomas A. Layman, Foreign Investment and Government Policy in the Third World: Forging Common Interests in Indonesia and Beyond, London: MacMillan, 1988, pp. 240 + xxxi. £35.

Alan Gelb and Associates, Oil Windfalls: Blessing or Curse? New York: Oxford University Press, for the World Bank, 1988, pp. 357 + x. $32.50.

Benjamin Higgins, The Road Less Travelled: A Development Economist's Quest, History of Development Studies 2, Canberra: National Centre For Development Studies, the Australian National University, pp. 204 + x. Paper: A$20.00

BRIEFLY NOTED: Sarwar Hobohm, Indonesia to 1993: Breakthrough in the Balance, London: Economist Intelligence Unit, Special Report no. 2012, 1989, pp. 91, £190 for this Plus the Companion Report, Indonesia to 1991: Can Momentum be Regained?

Geoffrey Hainsworth and Hasan Poerbo (eds), Local Resource Management: Towards Sustainable Development, Halifax: School for Resource and Environmental Studies, Dalhousie University, 1987, pp. 69 + xii.

H.W. Dick, Industri Pelayaran Indonesia: Kompetisi dan Regulasi, Jakarta: LP3ES, 1990, 306 + xxv.     

Quantitative growth effects of subsidies in a search theoretic R&D model

Should government subsidize R&D and does it matter how these subsidies are allocated? We examine these questions in a dynamic model where R&D is described as sequential sampling from a distribution of new ideas. Successful discoveries affect future available resources and incentives for further R&D. Consequently, there may be under-investment in R&D. We study the effect of government interventions aimed at fostering growth through R&D. Calibrating the model with aggregate data from the Israeli business sector allows us to quantitatively compare two forms of support resembling those actually used to encourage R&D in the Israeli business sector: (i) an unrestricted subsidy that may be used at the recipients' discretion to finance R&D or other investments, (ii) a subsidy earmarked by the government for R&D activities only. While there is no theoretical way to determine which of the two subsidies will have a greater impact on search for new ideas and growth, we find that in the calibrated economy both subsidies have a significant but similar impact on the economy's output and TFP growth rates. Accordingly, in the case of the Israeli business sector, the incentives to conduct R&D were sufficiently strong, and no R&D-specific encouragement was needed. However, a sensitivity analysis reveals that for economies characterized by other parameter values this result may not be true. Correspondence to: B. Bental     

Steel safeguards and the welfare of U.S. steel firms and downstream consumers of steel: a shareholder wealth perspective

Abstract.  This paper analyses the steel safeguards applied during 2001–3. Results reveal that for shareholders of U.S. steel companies safeguards generated positive 'abnormal' returns of approximately 6%. The cancellation of the safeguards resulted in wealth gains of about 5%. Steel shareholders experienced negative abnormal returns of −5% in response to the WTO ruling that the U.S. had violated WTO law. Our results are consistent with the neoclassical view that producers gain at the expense of consumers. Also, findings indicate that downstream-consuming firms that diversify production in NAFTA countries avert some trade policy risk associated with higher steel costs caused by safeguard protection.