capacity utilization under regulatory constraints this paper presents a methodology for predicting the effect of quota type regulatory constraints on capacity utilization for a multiproduct profit maximizing firm the approach builds on recent advances in the use of virtual prices to model the effects of rationing this allows the effects of regulatory constraints to be examined ex ante the methodol ogy is illustrated through a case study of the imposition of output quotas in an open access marine fishing industry on the pacific coast of the united states the results suggest that for certain species output quotas can cause strong disinvestment incentives have been used for many years to analyze the current status of the economy the expansion ary or contractionary forces on investment and inflation and productivity movements tradi tional cu measures were based on the notion of maximum possible output recently economists have developed measures derived from the eco nomic theory of the firm and based instead on a notion of optimal output berndt and fuss 1986 hickman 1964 klein 1960 morrison 1985 1988 segerson and squires 1990a these measures assume that some inputs are quasi fixed and that capacity utilization is determined by the level of the quasi fixed input s relative to the level of output previous studies of theory based cu measures have generally assumed that the industry under study was free from regulatory constraints an exception is morrison s 1988 study which ana lyzed among other things the effect of pollution control regulations on capacity utiliza tion in the u s and canadian steel industries the analysis is retrospective however since it studied the impacts of regulations that were al ready in effect in many cases it would be useful to be able to predict the effect of proposed regulations on ca pacity utilization such prospective or ex ante analysis would provide regulators with useful information regarding the likely effect of alterna tive policies on investment incentives for exam ple regulatory production limits on a single product such as quotas may cause multiproduct firms to change the volume and mix of their production which could in turn change invest ment incentives 1 likewise input use restrictions could affect both output supplies and the de mands for unregulated inputs thereby altering investment incentives predictions of these changes would contribute to designing more ef fective public policies regulating capacity and in vestment

an overview of hofstede inspired country level culture research in international business since 2006 kirkman lowe gibson s 2006 jibs article summarized and critiqued international business research inspired by the most cited book in the field hofstede s 1980 culture s consequences international differences in work related values hofstede 1980 2001 they identified a number of issues in this research and offered several recommendations for improving it in the future thus laying a strong foundation for hofstede related work since 2006 in this commentary we assess kirkman et al s 2006 impact on the field our review shows that their ideas have informed and inspired their own and other scholars work and have led to significant progress in the way in which hofstede s framework has been used in international business in the last decade here we specifically focus on the country level culture studies and assess how research has implemented kirkman et al s three main recommendations to explore cultural dimensions beyond those introduced by hofstede to distinguish between country effects and cultural effects and to show not only if culture matters but also how much it matters in addition to the overview we provide a comprehensive test of these recommendations showing how they can be put into research practice underscoring the theoretical and empirical relevance of the original 2006 article our commentary concludes with additional ideas on further strengthening hofstede inspired research at the country level of analysis

primal and dual capacity utilization an application to productivity measurement in the u s automobile industry capacity utilization measures have traditionally been constructed as indexes of actual as compared to potential output this potential or capacity output y can be represented within an economic model of the firm as the tangency between the short and long run average cost curves economic theoretical measures of capacity utilization cu can then be characterized as y y where y is the realized level of output these quantity or primal cu measures allow for economic interpretation they provide explicit inference as to how changes in exogenous variables affect cu additional information for analyzing deviations from capacity production can be obtained by assessing the dual cost of the gap in this article the definitions and representations of primal output and dual cost cu measures are formalized within a dynamic model of a monopolistic firm as an illustration of this approach to characterizing cu measures a model is estimated for the u s automobile industry 1959 1980 and primal and dual cu

investment drivers in a fishery with tradable quotas i analyze drivers of investment in a fishery with tradable quotas theory predicts that tradable quotas increase efficiency because efficient firms buy quotas from less efficient firms i identify what drives investment using data on norwegian purse seiners results show that while the basic economic investment model explains investment within firms it does not explain differences between firms these differences are explained by other firm specific factors such as geographical location whether it is a family firm and prices paid for quotas consequently investment strategies are not necessarily driven by efficiency considerations and quota trade may not increase allocative efficiency jel q22 q28

a survey on risk averse and robust revenue management abstract many industries use revenue management to balance uncertain stochastic demand and inflexible capacity popular examples include airlines hotels car rentals retailing and manufacturing the classical revenue management approaches considered in theory and practice are based on two assumptions first demand as the only uncertain variable follows a known distribution and second risk neutrality justifies the maximization of expected revenue recently two related streams of literature emerged that do not need these assumptions research on risk averse revenue management acknowledges that in practice many decision makers are risk averse research on robust revenue management focuses worst case scenarios without a known demand distribution which is especially relevant for new and extremely unstable businesses this paper motivates the consideration of risk averse and robust revenue management we briefly introduce revenue managements two main methods capacity control and dynamic pricing in the classical risk neutral setting then we provide an exhaustive review of the literature on risk averse and robust capacity control and dynamic pricing in doing so the relevant decision criteria are briefly introduced finally possible avenues for future research are outlined

firm behavior under quantity controls the theory of virtual quantities the theory of virtual quantities the dual to virtual prices provides a framework to analyze competitive multiproduct firm behavior under multiple quantity controls on inputs and outputs including command and control quotas and transferable property rights the framework addresses the firm s reactions to regulatory controls impacts of adding or dropping quantity controls inferring unrationed from rationed production and conversion from command and control quotas to cap and trade systems with transferable property rights and secondary market behavior the paper develops reasons for failure of quasi concavity of technology extends the elasticity of intensity s properties and integrates the virtual price and virtual quantity frameworks virtual quantities are applied to assess potential firm responses to quantity controls and a potential transferable property right in a malaysian fishery

the expansion of foreign direct investments discrete rational location choices or a cultural learning process it is recognized in the literature that experience may affect the cost and the uncertainty of operating in foreign markets and experience and market knowledge may therefore influence the location decisions of fdis economic theory does not however predict a general expansion pattern of fdis across industries on the other hand the theory associated with the internationalization process approach highlights the importance of cultural distance and predicts a movement from close to more distant markets as more experience is acquired by the firm the internationalization process approach is rooted in a behavioral theory of the firm

experiential knowledge and cost in the internationalization process using a behavioral approach this study identifies and delineates components of experiential knowledge in the internationalization process three hypotheses are developed and tested they center ar

discrete time mean cvar portfolio selection and time consistency induced term structure of the cvar abstract we investigate a discrete time mean risk portfolio selection problem where risk is measured by the conditional value at risk cvar a substantial challenge is the combination of a time inconsistent objective with an incomplete and dynamic model for the financial market we are able to solve this problem analytically by embedding the original time inconsistent problem into a family of time consistent expected utility maximization problems with a piecewise linear utility function the optimal investment strategy is a fully adaptive feedback policy and the cumulated amount invested in the risky assets is of a characteristic v shaped pattern as a function of the current wealth for the incomplete discrete time market considered herein the mean cvar efficient frontier is a straight line in the mean cvar plane and thus economically meaningful this contrasts the complete continuous time setting where the mean cvar efficient frontier is degenerate or does not exist at all we further solve an inverse investment problem where we investigate how mean cvar preferences need to adapt in order for the pre committed optimal strategy to remain optimal at any point in time our result shows that a pre committed mean cvar investor behaves like a naive mean cvar investor with a time increasing confidence level for the cvar who revises the investment decision at every point in time finally an empirical application of our results suggests that risk measured by the cvar might help to understand the long standing equity premium puzzle

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

towards a more balanced treatment of culture in international business studies the need for positive cross cultural scholarship the results of a content analysis of 1141 articles published in the journal of international business studies over a 24 year time period 1989 2012 reveal that a pervasive tendency exists in the international business ib literature towards emphasizing the adverse outcomes associated with cultural differences more than the positive effects we argue that this imbalance is not an accurate reflection of the reality of cross cultural contact in ib and that it has hindered our understanding of the processes and conditions that help organizations leverage the benefits of cultural differences in a wide range of contexts we offer several explanations for the predominance of the negative over the positive in theory and research on culture in ib and using a positive organizational scholarship lens couched in the context of march s 1991 exploration vs exploitation organizational learning framework highlight a complementary perspective namely the idea that cultural differences can be an asset not just a liability in a range of ib contexts we conclude by offering an integrative framework within which both positive and negative effects of cultural differences can be understood and provide a road map for future research on culture in ib

absorptive capacity socially enabling mechanisms and the role of learning from trial and error experiments a tribute to dan levinthal s contribution to international business research the concept of absorptive capacity ac of firms cohen and levinthal 1989 and 1990 is a foundational feature of organizational learning and adaptation that has had enormous influence in international business ib and innovation studies and management research in general in this tribute to dan levinthal we discuss the close connection between ac and learning two areas central to dan levinthal s research in relation to different contexts where ac comes into play in extant ib research we discuss four specific aspects of the nexus of ac and learning in the context of ib 1 bridging between intra and inter firm learning 2 a routine based framing of ac that emphasizes processes and capabilities underlying seeking assimilating and innovation in a global setting 3 the role of socially enabling mechanisms and 4 the logic of learning through trial and error experiments within firms and countries

closing knowledge gaps in foreign markets knowledge and learning are ascribed pivotal roles in firms internationalization processes perceived market uncertainties namely knowledge gaps related to business environments in foreign markets may curb firms inclinations to commit resources to these markets this study explores whether knowledge gaps tend to increase or decrease with time when operating in the foreign market and it discusses which learning components narrow or widen the perceived knowledge gap a theoretical model is developed based on the internationalization process view and the more recent organizational learning perspective including such concepts as overconfidence and absorptive capacity the theoretical model is tested on a set of primary data covering danish and swedish firms and their foreign market operations the results suggest a more subtle relationship between experience and perceived knowledge gaps than the mechanical relationship portrayed by the internationalization process view a relationship in which absorptive capacity and in particular overconfidence play important roles

the psychic distance paradox companies tend to begin their internationalization process in countries that are psychically close researchers describe the sequence of entry that firms follow and the mode of entry they choose they suggest that psychically close countries are more easily understood than distant ones and offer more familiar operating environments although not prescriptive an unstated conclusion can be drawn linking sequence of entry to performance evidence from thirty two canadian retail companies shows that only seven 22 were functioning successfully in the united states the psychic distance paradox is that operations in psychically close countries are not necessarily easy to manage because assumptions of similarity can prevent executives from learning about critical differences moreover empirical evidence from 271 ceos confirms greater cultural differences between canada and the u s than assumed previously modifications are suggested to improve the psychic distance concept

cultural differences mne learning abilities and the effect of experience on subsidiary mortality in a dissimilar culture evidence from korean mnes in a departure from prior studies presuming a beneficial experience effect in foreign direct investment fdi the present paper examines the conditions under which fdi experience may actually harm subsequent subsidiaries we argue that multinational enterprises mnes may draw erroneous inferences and learn incorrectly from their early expansions when new to a dissimilar culture because their learning abilities are eroded by cultural differences we posit that the characteristics of an mne s international expansion including scope pace rhythm and entry mode moderate this negative experience effect by influencing the mne s learning ability in foreign cultures using a data set of fdis by south korean mnes between 1990 and 2006 we find a positive relationship between subsidiary mortality and experience when an mne has a low level of experience in a dissimilar culture this relationship is weaker if the mne s prior fdi has been dispersed across different cultures is stronger if it expanded internationally at a fast pace and becomes negative once the mne has accumulated a high level of experience in the host culture we conclude that when expanding into dissimilar cultures mnes must establish mechanisms to mitigate incorrect learning and reexamine the correctness of inferences drawn from past experience before applying them

national institutional differences and cross border university industry knowledge transfer abstract does inter national institutional difference hamper technology transfer from the foreign university to the business enterprises a multinational study on institutions suggests that some elements of institutions of nations positively influence international technology transfer some other elements of institutions negatively influence the international technology transfer and yet some other elements of institutions of nations have no influence on the international technology transfer the empirical analysis on six institutional dimensions reveals variegated results i religious distance has a positive effect on international technology transfer when listed companies are controlled ii social distance has a positive effect when listed firms are not controlled iii education distance has a positive effect when listed companies are not controlled iv political distance has no effect on international technology transfer and vi industrial distance has negative effect on international technology transfer however hofstede s measures on national cultural dimensions show no significant effects the non significant results could be due to the measurement of national cultures characteristics of the biopharmaceutical industry or due to changes in the patterns of national cultures over time

static efficiency decompositions and capacity utilisation integrating economic and technical capacity notions starting from existing static decompositions of overall economic efficiency on nonparametric production and cost frontiers this article proposes more comprehensive decompositions including several cost based notions of capacity utilization furthermore in case prices are lacking we develop additional decompositions of overall technical efficiency integrating a technical concept of capacity utilization these new efficiency decompositions provide a link between short and long run economic analysis and in empirical work avoid conflating inefficiency and differences in capacity utilization an empirical analysis using a monthly panel of chilean hydro electric power plants illustrates the potential of these decomposition proposals

capacity and capacity utilization in common pool resource industries excess capacity poses one of the most pressingproblems that arise when industries exploitcommon pool natural resources it entailsover investment in the capital stock andexcessive use of variable inputs and placesadditional exploitation pressures on theresource stocks confusion persists over theappropriate definition and measurement ofcapacity and capacity utilization for theseindustries but understanding capacity and itsmeasurement is necessary to properly design acapacity management program this paperaddresses these issues by overviewing theconceptual and theoretical bases for capacityand capacity utilization measurement identifying specific problems for common poolresources outlining alternative methodologiesfor their measurement and illustrating the useof these definitions and measurement methods ina fisheries case study

dynamic sampling algorithms for multi stage stochastic programs with risk aversion we consider the incorporation of a time consistent coherent risk measure into a multi stage stochastic programming model so that the model can be solved using a sddp type algorithm we describe the implementation of this algorithm and study the solutions it gives for an application of hydro thermal scheduling in the new zealand

determinants of cross national knowledge transfer and its effect on firm innovation this study examines the determinants of international knowledge flow from a resource based perspective it evaluates the impact of cross national knowledge transfer on firm innovative performance based on 56 027 us patents owned by 53 selected firms in the us based pharmaceutical industry the results suggest that innovative performance is a curvilinear function of the international knowledge content used by a firm to innovate as hypothesized it was found that at 1 low and moderate levels of international knowledge content a firm s strategy to transfer international knowledge improves its innovative performance and at 2 higher levels of international knowledge content there are diminishing marginal returns to transferring knowledge from overseas

production quota in multiproduct pacific fisheries abstract assessing the individual firm s technology and costs in a multispecies fishery allows design of a more effective output quota prior to regulation by anticipating and controlling for the firm s regulation induced responses an empirical study of a pacific coast trawl fishery indicates that the firm s flexibility of product decision is tightly constrained by its technology and cost structure hence as the resource stock for the regulated species sablefish deteriorates and the trip quota progressively tightens the firm cannot sufficiently reorganize its product bundle to preclude increasingly large sablefish disposal this defeats the purpose of the production quota

a multistage linear stochastic programming model for optimal corporate debt management abstract large corporations fund their capital and operational expenses by issuing bonds with a variety of indexations denominations maturities and amortization schedules we propose a multistage linear stochastic programming model that optimizes bond issuance by minimizing the mean funding cost while keeping leverage under control and insolvency risk at an acceptable level the funding requirements are determined by a fixed investment schedule with uncertain cash flows candidate bonds are described in a detailed and realistic manner a specific scenario tree structure guarantees computational tractability even for long horizon problems based on a simplified example we present a sensitivity analysis of the first stage solution and the stochastic efficient frontier of the mean risk trade off a realistic exercise stresses the importance of controlling leverage based on the proposed model a financial planning tool has been implemented and deployed for brazilian oil company petrobras

the effect of national culture on the choice of entry mode characteristics of national cultures have frequently been claimed to influence the selection of entry modes this article investigates this claim by developing a theoretical argument for why culture should influence the choice of entry two hypotheses are derived which relate culture to entry mode choice one focusing on the cultural distance between countries the other on attitudes towards uncertainty avoidance using a multinomial logit model and controlling for other effects the hypotheses are tested by analysing data on 228 entries into the united states market by acquisition wholly owned greenfield and joint venture empirical support for the effect of national culture on entry choice is found

flexible lease contracts in the fleet replacement problem with alternative fuel vehicles a real options approach abstract we study the use of flexible lease contacts in the fleet portfolio management problem of a firm that aims to minimize its cost and risk recursive expected conditional value at risk simultaneously in a stochastic multi period setting by deciding which technologies to use in its fleet we propose a model using real options return and swap to model contract flexibility and to account for different uncertainties co2 prices fuel prices mileage covered by a vehicle fuel consumption and technological we analyse how fuel price uncertainty and technological progress influence the value of the options we validate the results using a real world case study conducted in the uk

widening the lens rethinking distance diversity and foreignness in international business research through positive organizational scholarship the point of departure for the special issue is that current theory and research in international business ib may have overly emphasized a negative view on foreignness distance and differences of all kinds national cultural organizational and institutional with an emphasis on liabilities and adverse outcomes associated with such differences while existing research is certainly valuable we argue that focusing on mostly negative processes and outcomes has hindered our understanding of the dynamics processes and conditions that enable organizations to benefit from diversity in a wide range of ib contexts the goal of this special issue is to promote research that is in line with a positive organizational scholarship perspective which encourages scholars to look at commonly considered phenomena in new ways as well as to explicitly consider positive phenomena in ib research we then introduce the three articles included in the special issue and highlight how they help ib scholars better understand when and how foreignness distance and diversity can enhance organizational effectiveness and performance at multiple levels

measuring the degree of internationalization of a firm a comment sullivan s 1994 suggestion that an index measure of the internationalization construct is superior to single variable measures is critiqued on psychometric content validity criterion validity reliability and utilitarian grounds we argue that internationalization is more complex than envisioned by this index and suggest that further refinement of the construct is necessary before constructing indices

time consistency and risk averse dynamic decision models definition interpretation and practical consequences abstract this paper aims at resolving a major obstacle to practical usage of time consistent risk averse decision models the recursive objective function generally used to ensure time consistency is complex and has no clear direct interpretation practitioners rather choose a simpler and more intuitive formulation even though it may lead to a time inconsistent policy based on rigorous mathematical foundations we impel practical usage of time consistent models as we provide practitioners with an intuitive economic interpretation for the referred recursive objective function we also discourage time inconsistent models by arguing that the associated policies are sub optimal we developed a new methodology to compute the sub optimality gap associated with a time inconsistent policy providing practitioners with an objective method to quantify practical consequences of time inconsistency our results hold for a quite general class of problems and we choose without loss of generality a cvar based portfolio selection application to illustrate the developed concepts

confirmation bias in individual level perceptions of psychic distance an experimental investigation in this article we draw from social cognition theory to explore the influence of confirmation bias on perceptions of psychic distance despite the prominence of psychic distance and other forms of distance as potential predictor variables in international business ib research very little work has been done exploring the factors and processes that shape a decision maker s perceptions of distance we argue in this article that social cognition theory can help fill that void specifically we hypothesize that confirmation bias may influence managers processing of information concerning differences between cultures such a bias may cause managers to attend more to information that confirms pre existing beliefs and discount information that contradicts pre existing beliefs thus biasing their perceptions of psychic distance using an experimental approach the impact of confirmation bias on perceptions of psychic distance is confirmed in a sample of 200 australian managers the observed changes in perceptions are also associated with changes in perceptions of risk and preferences for entry modes in a hypothetical business scenario as a result this article demonstrates how the application of social psychology theories and methods can provide new theoretical perspectives to explain when how and why individual level perceptions of psychic distance might diverge from national level averages

export intermediation an empirical test of peng and ilinitch this paper provides empirical evidence from france on the role of export intermediary firms using data from 20 000 french firms this paper tests two of the five transaction cost based propositions on the role of export intermediaries by peng and ilinitch 1998 while the empirical evidence only partially supports their first proposition on distance and familiarity their second proposition on product complexity is corroborated

risk propensity in the foreign direct investment location decision of emerging multinationals a distinguishing feature of emerging economy multinationals is their apparent tolerance for host country institutional risk employing behavioral decision theory and quasi experimental data we find that managers domestic experience satisfaction increases their relative risk propensity regarding controllable risk legally protectable loss but decreases their tendency to accept noncontrollable risk e g political instability in contrast firms potential slack reduces relative risk propensity regarding controllable risk yet amplifies the tendency to take noncontrollable risk we suggest that these counterbalancing effects might help explain prior ambiguous findings on the relationship between experience slack and fdi decisions the study provides a new understanding of why firms exhibit heterogeneous responses to host country risks and the varying effects of institutions

long run profit functions for multiproduct firms a long run specification of the multiproduct profit function is developed from the restricted profit function the multiproduct restricted profit function and the envelope condition are used to estimate the optimal long run levels of the quasi fixed factor formulas for long run marshallian elasticities of substitution and transformation economies of scope product specific and overall economies of scale and economic measures of capacity utilization are developed for the translog functional form the methodology is illustrated by a case study of the new england otter trawl industry

on the solution variability reduction of stochastic dual dynamic programming applied to energy planning abstract in the hydrothermal energy operation planning of brazil and other hydro dependent countries stochastic dual dynamic programming sddp computes a risk averse optimal policy that often considers river inflow autoregressive models in practical applications these models induce an undesirable variability of primal thermal generation and dual marginal cost and spot price solutions that are highly sensitive to changes in current inflow conditions this work proposes two differing approaches to stabilize sddp solutions to the energy operation planning problem the first approach regularizes primal variables by considering an additional penalty on thermal dispatch revisions over time and the second approach indirectly reduces thermal generation and marginal cost variability by disregarding past inflow information in the cost to go function and compensates with an increase in risk aversion for comparison purposes we assess solution quality with a set of proposed indexes summarizing each important aspect of a hydrothermal operation planning policy in conclusion we show that it is possible to obtain high quality solutions in comparison to current benchmarks with significantly reduced variability

multi output nonfrontier primal measures of capacity and capacity utilization this article implements an econometric approach for generating primal capacity output and utilization measures for fisheries in situations where regulatory environmental and resource conditions affect catch levels but are not independently identified in the data frontier based capacity models may interpret such impacts as production inefficiency however if such inefficiencies are unlikely to be eliminated the implied potential output increases may be unrealistic we develop a multi output multi input stochastic transformation function framework that permits various assumptions about how output composition may change when operating at full capacity we apply our model to catcher processor vessels in the alaskan pollock fishery

fishing revenue productivity and product choice in the alaskan pollock fishery a key element in evaluating fishery management strategies is examining their effects on the economic performance of fishery participants yet nearly all empirical studies of fisheries focus exclusively on the amount of fish harvested the economic benefits derived from fish stocks involve the amount of revenue generated from fish processing which is linked to both the way fish are harvested and the products produced from the fish in this study we econometrically estimate a flexible revenue function for catcher processor vessels operating in the alaskan pollock fishery recognizing potential endogeneity and a variety of fishing inputs and conditions we find significant own price supply responses and product substitutability and enhanced revenues from increased fishing days and tow duration after a regulatory change introduced property rights through a new fishing cooperative we also find significant growth in economic productivity or higher revenues over time after controlling for observed productive factors and price changes which exceeds that attributable to increased harvest these patterns suggest that the move to rights based management has contributed significantly to economic performance in the pollock fishery

on the internationalization process of firms a critical analysis even though international marketing has been challenged because of theoretical and methodological shortcomings very few researchers have actually attempted to analyze the weaknesses based on principles of theory evaluation in this article the author examines two types of models addressing the individual firm s internationalization process a theory evaluation is performed based on the explanation and the falsification criteria in order to improve the internationalization models some measures are proposed

contracting strategies for renewable generators a hybrid stochastic and robust optimization approach we present a new methodology to support an energy trading company etc to devise contracting strategies under an optimal risk averse renewable portfolio the uncertainty in the generation of renewable energy sources is accounted for by exogenously simulated scenarios as is customary in stochastic programming however we recognize that spot prices largely depend on unpredictable market conditions making it difficult to capture its underlying stochastic process which challenges the use of fundamental approaches for forecasting under such framework industry practices make use of stress tests to validate portfolios we then adapt the robust optimization approach to perform an endogenous stress test for the spot prices as a function of the buy and sell portfolio of contracts and renewable energy generation scenarios the optimal contracting strategy is built through a bilevel optimization model that uses a hybrid approach mixing stochastic and robust optimization the proposed model is flexible to represent the traditional stochastic programming approach and to express the etc s uncertainty aversion in the case where the price distribution cannot be precisely estimated the effectiveness of the model is illustrated with examples from the brazilian market where the proposed approach is contrasted to its stochastic counterpart and both are benchmarked against observed market variables

the dynamic efficiency costs of common pool resource exploitation we conduct the first empirical investigation of common pool resource users dynamic and strategic behavior at the micro level using real world data fishermen s strategies in a fully dynamic game account for latent resource dynamics and other players actions revealing the profit structure of the fishery we compare the fishermen s actual and socially optimal exploitation paths under a time specific vessel allocation policy and find a sizable dynamic externality individual fishermen respond to other users by exerting effort above the optimal level early in the season congestion is costly instantaneously but is beneficial in the long run because it partially offsets dynamic inefficiencies jel d24 q21 q22

application of the distance function to nonmarket valuation of environmental goods and services an illustrative example abstract this paper develops and implements a unique formulation of a household production model in that technology is characterized as a distance function the properties of the distance function allow for the derivation of shadow prices for the inputs and outputs associated with household production which can be applied to the problem of valuing nonmarket goods or activities the approach requires only one input to or output of household production to bear a price the derivation of shadow prices for all other household inputs outputs follows from the properties of the distance function i demonstrate the approach using data on the waste management activities of a sample of households from marietta georgia and by calculating shadow prices for the nonmarket activity of recycling

psychic distance and performance of mncs during marketing crises when multinational corporations face foreign marketing crises the psychic distance between the home and host country represents a distinct challenge this paper examines the curvilinear relationship between psychic distance and firm performance during marketing crises and the moderating role of marketing capabilities we test our hypotheses using an event study on a panel dataset of 217 firms based in 19 countries facing crises in 41 host countries the results show that 1 marketing crises are most harmful when the host country is either very close or far away and 2 firms can mitigate this effect with marketing capabilities