The Impact of Transaction Costs and the Expected Length of Stay on Homeownership

Economic theory suggests that an increase in the expected length of stay in a dwelling increases the probability of a household choosing to own a house rather than rent. This hypothesis is derived from recognition that there are substantial transaction costs associated with homeownership and increased expected time in the home reduces the annualized transaction cost. Using a military data set, we confirm that expected length of stay in a dwelling and the transaction costs of selling are very important to the ownership decision. Our best estimate of the transaction costs of selling a home are the sum of 3% of house value and 4% of household earnings.     

Intertemporal market division:: A case of alternating monopoly

In this paper, we report on an equilibrium with market dominance that exists in a simple two-firm model that features neither entry barriers nor sophisticated punishment strategies. This equilibrium induces an intertemporal market division in which the two firms alternate as monopolists - despite the fact that the model also sustains a Cournot duopoly. Even when initially both firms are active in the market, the alternating monopoly reveals itself rather quickly. Moreover, it Pareto dominates the Cournot equilibrium - as it is close to the cartel outcome. Several examples of what well may be such alternating monopolies are presented.     

How does the availability and use of flexible leave influence the employer–employee relationship?

In this article, we develop, and empirically test, a moderated mediation model of the effects of flexible leave on employees' organizational attachment. Drawing on a social exchange framework and signaling theory, we explore how the material and non-material nature of exchange between the employer and employee shapes their relationship. First, we show that the relationship between the availability of flexible leave and organizational attachment is shaped by two competing mediators, perceived organizational support (POS) and perceived flexibility stigma. Second, we delineate between availability and use of the policy, to show how the effect of POS is enhanced and perceived flexibility stigma reduced, with use. Our findings demonstrate that the relationship between the availability of flexible leave and organizational attachment is complex, but is enhanced through use of flexible leave. We contribute toward HRM scholarship about the relationship between employees' experience of HR practices and their corresponding impact on employees' subsequent behavior.     

Information on sellers and buyers characteristics: added value to explain price formation at primary fish markets in managed French scallop fisheries

The aim of this article is to explore, through a hedonic approach, the factors that might explain the price variability for the French-managed fishery of scallop at primary fish markets. In addition to factors classically identified in the current literature like intrinsic product characteristics or markets situation, the characteristics of operators are tested. The relationships of loyalty between sellers and buyers, and market assiduity are notably considered.     

Internationalizing audit education

Audit education is typically offered only to accounting majors. We argue that auditing provides a way of thinking that could serve as a framework for an accounting curriculam. We describe two parts of a course content that could be incorporated into an existing auditing course or a begining accounting course. The first section emphasizes accountability; the second emphasizes the role of the auditor in the accountability process. The concepts are best taught within an international paradigm that permits examination of various institutional environments.     

Market share and market size variances in a multi-product environment: An evaluation of competing formulations

Market share and market size variances are typically included in cost and managerial accounting texts in the discussion on sales variances. Shank and Churchill (1977) introduced a widely-adopted methodology wherein these variances are equal to the sales quantity variance, with the sales mix variance accounting for the entire variation in sales mix. Hirsch (1988) treats multiple products differently than Shank and Churchill (1977) and offers an alternative formulation for analyzing market share and market size variances. This paper compares the two variance formulations and demonstrates that the market share and market size variances under the Hirsch formulation more realistically reflect changes in market share and market size. As a result, the variances under the Hirsch formulation are more useful for managerial decision-making.     

Requests for zoo visitors to undertake pro-wildlife behaviour: How many is too many?

Recognising the potential conservation impact, zoos regularly ask their visitors to undertake pro-wildlife behaviour. This paper presents the results of two studies undertaken to address the question: how often during a visit should visitors be asked? Study 1 sought to a) determine individuals' personal thresholds and b) the point where the number of different behaviours requested began affect visitors' experiences. Study 2 sought the same, but focused on requests for the same behaviour. Results suggest that few respondents' personal thresholds were crossed (2.5% in Study 1 and 9% in Study 2). In neither study did many respondents (2.5% in Study 1 and 2.8% in Study 2) feel that the number of requests negatively affect their overall zoo experience. While there are caveats, we conclude that there appears little cause for concern about asking zoo visitors on multiple occasions to act in support of wildlife. Indeed, such requests may improve experiences.     

Corporate ownership and control structures: An international comparison

This paper analyzes the economic fundamentals of the corporate firm with publicly held shares and the salient characteristics of varying corporate systems, focusing on international differences in ownership and control structures, including alternative disciplinary mechanisms. Those international differences seem to influence economic behavior and corporate performance, including the way in which corporate restructurings take place. Market-oriented corporate systems and network-oriented corporate systems are likely to mutually converge in the future.     

Optimal design of trade institutions

We model an economy with social institutions that facilitate trade and induce three types of costs: establishment costs, access costs, and use costs. Use costs are specific transaction costs related to the use of these trade institutions. We assume that a trade institution is economically completely determined by the costs it imposes and by the effects on the trades it facilitates. We extend the Pareto efficiency concept to include various modes of organization of social institutions: the costs and benefits of these organizations are expressed in the trades they facilitate.Within this setting we discuss a valuation equilibrium concept, in which all agents use a common conjectural price system that assigns to every trade institution the price vector that would prevail under it. This feature of the equilibrium is important in securing the second welfare theorem, and is new to the analysis of economies with costly trade. Since the use costs can be nonlinear, there are non-convexities that prevent the second welfare theorem from obtaining in a finite economy, but we show it for large economies.Received: 3 April 2002, Accepted: 30 April 2003, JEL Classification: D59, D70, H49Robert P. Gilles: donewhile visiting the Center for Economic Research, Tilburg University, Tilburg, The Netherlands. Financial support from the Netherlands Organization for Scientific Research (NWO), grant B46-390, is gratefully acknowledged.Dimitrios Diamantaras: Part of this research wasSupport from Temple University via a Fuller research fellowship is gratefully acknowledged.The authors would like to thank Suzanne Scotchmer, Andreu Mas-Colell, Marcus Berliant, Shlomo Weber, Hans Haller, Dhanajay Gokhale, Julian Manning, and two anonymous referees for their valuable comments and discussions of previous drafts of this paper. A previous version of this paper was circulated as Equilibria of economies with costly trade.     

FINANCIAL CHARACTERISTICS RELATED TO MANAGEMENTS'STOCK SPLIT AND STOCK DIVIDEND DECISIONS

Several studies have made inquiries of corporate managers concerning their motivations for undertaking stock splits and stock dividends. This paper investigates whether the factors identified by these studies are in fact associated with the actual stock distribution decisions of managers. The results are consistent with the view that managements issue large stock distributions (25 per cent or greater) in order to keep the per share price in an optimal range and to signal optimistic expectations to the market. Firms with relatively low per share prices were inclined to issue small stock distributions (less than 25 per cent); the signaling motivation also played a role here.