Showing papers on "Empirical research published in 1976"

Price-cost margins and market structure

Abstract: In this thesis, the relationship between some aspects of industrial market structure and industry price-cost margins or profit-revenue ratios is investigated. This is done mainly by building mathematical models based upon the tenet of profit maximisation. Empirical tests of the hypotheses developed are carried out using regression analysis on recent UK data. After an introductory chapter, the arguments are developed by successively taking structural features into account. Thus initially, problems involved in relating the structure of established firms in an industry to price-cost margins are considered. Then the possibilities and problems of potential entry into an industry are opened up. After that, the power of buyers from and sellers to the industry are brought into partial account. Additional potentially relevant structural factors receive a more cursory treatment before the analysis passes to empirical testing. At every stage, the relevant established literature is reviewed. It is found theoretically that the price-cost margin may be related to two main aspects of market structure, the "Herfindahl" index and a bilateral power index developed here. However, the commonly included "entry barrier variables need not, under reasonable assumptions, be considered relevant. The empirical results lend support to the theoretical conclusions regarding the Herfindahl and bilateral power indices. The contribution to knowledge in the subject area achieved herein is (hopefully) mainly in the rigorous development and application of models which have, in general, previously been rather vaguely based upon commonsense extensions of the fundamentals of economic theory. In fact, the thesis consists to a large extent in the belief that industrial economic problems often considered as having theoretically indeterminate solutions may be profitably examined and "solved" rigorously, with the judicious use of restrictive assumptions.

Crime Prevention and the Displacement Phenomenon

Abstract: This article examines the argument that crime prevention programs which stress opportunity reduction or increased risk to offenders are without value because they merely displace crime—that is, shift its incidence to other forms, times, and locales. The paper is based in part on two empirical studies that examined the criminal histories of and interviews with 146 robbers and burglars.Deterministic and opportunistic criminal behavior and the influence of personality, age, and crime type on the displace ment potential of various offenders are analyzed. The results suggest that there are definite limits to various displacement possibilities. Some crimes are so opportunistic that their pre vention in one circumstance will not lead to their occurrence in another. Even in instances where offenders blocked in one sphere would wish to operate in another, limits and costs will lessen the frequency of operation and therefore reduce the overall crime rate.The study further suggests that the limitations to displace m...

Conflict and Cohesion: A Review of the Literature

Abstract: The paper reviews the theoretical formulations and the empirical tests of the proposition that external conflict increases internal cohesion. Literature from sociology, anthropology, psychology, and political science is discussed. Though it is often assumed to be true and is easily illustrated, the empirical studies suggest that there are a number of intervening variables and that the hypothesis is not uniformly true. While hardly adequate, these empirical studies provide a subtler specification of the hypothesis, knowledge of which can lead researchers to structure their studies differently. Examples of this are provided and other areas of application are also discussed.

Product Performance and Consumer Satisfaction: A New Concept: An Empirical Study Examines the Influence of Physical and Psychological Dimensions of Product Performance on Consumer Satisfaction

Abstract: E VEN though knowledge of the processes that may determine consumer satisfaction should be of interest to both marketing theorists and practitioners, the topic has received little attention in the literature. A growing number of studies have analyzed perceived product performance and expectations, but they have not considered the relationships between expectations, performance, and satisfaction.' In addition, it is seldom clear which general dimensions of product performance are important to the consumer and how these dimensions are related to satisfaction. The study reported in this article was designed to examine one aspect of the relationship between expectations, performance, and satisfaction. In particular, the authors look at the expressive (nonmaterial, psychological) and instrumental (physical) dimensions of a product, in this case clothing, to determine the extent of their influence on consumer satisfaction and dissatisfaction. Implications are given for the study of

Achievement Treatment Interactions

Abstract: The field of education is currently filled with numerous attempts to inspire educators to implement and researchers to study individualized instruction. But, adapting instruction to the student is hardly new in education. Plato's famous dialogue with the slave boy Meno is an ancient attempt to suit instruction to the student. Cohen (1963) attempted to recast this classic dialogue into a linear program, thus neatly relating the ancient and modern interest in adapting instruction to the student. Despite this persistent interest in individualized instruction, there are few systematic attempts to adapt the method of instruction to student characteristics. Existing adaptations generally consist of varying instructional rate to student needs rather than instructional method. When instructional method has been suited to the student, such adaptations are typically based on the artistry of the practitioner, rather than on a systematically formulated set of precepts that have been verified by empirical research. The purpose of this paper is to review some of the

Expert Judgment in Audit Program Planning

Abstract: Independent auditors collect, weight, and combine information in formulating an opinion about the fairness of their clients' financial statements. Auditors exercise professional judgment in determining the type and extent of information to collect and in assessing the implications of this information. The exact constitution of professional judgment is unknown but is certainly influenced by lengthy formal education and prior job experience. Because precise guidelines for information collection and evaluation in auditing do not exist, individual professional judgment plays an extremely important and pervasive role in auditing (Mautz [1959]). Since individual professional judgment is generally conceded to be very important in auditing, it should be the subject of a commensurate amount of systematic research. The several empirical studies that have been conducted (some of which are reviewed below) have generally reported substantial differences among the judgments made by individual auditors who served as subjects in the research. If auditors are, in fact, idiosyncratic in collecting, weighting, and/or combining information, then the validity of their judgments may be questioned, and research into the nature and costs of such differences may be in order.

Do Consumers Evaluate Products by Adding or Averaging Attribute Information

Abstract: Two empirical studies are reported in which tests are conducted between adding and averaging combination rules for evaluative judgments. The results indicate that attribute information combines by averaging. Multi-attribute models which assume adding are contradicted by the findings, and thus, provide an inadequate description of consumers' psychological processes.

The Impact of Dividend and Earnings Announcements: A Reconciliation

Abstract: Two extensive empirical studies have recently attempted to measure the impact of dividends on stock prices. One was a study by Watts' in the Journal of Business which concluded that "there is little potential information in dividends." The second was an earlier article by Pettit2 which found that "market participants make considerable use of the information implicit in announcements of changes in dividend payments." Because of the diametrically opposite conclusions of these studies, and the resulting ambiguity in the size of the dividend effect, the questions raised merit further examination. To this end this note will evaluate the basis for the divergent findings. It should be kept in mind that the original rationale for the conveyance of information through dividend announcements was that reported earnings may not be an accurate reflection of real earnings since they are subject to random nonrecurring factors that cannot be specifically and exactly identified by the investing public. Since management may have greater insight than the rest of the market as to the level of present and future earning power, they may use dividend payments as the medium through which their expectations are conveyed. Ultimately, of course, it is an empirical question as to whether dividends convey new information over and above that conveyed by published earnings. After briefly summarizing the methodology used in the two studies in Section II, Section III explores for the potential differences in each and offers some empirical evidence to reconcile the differential results.

The Nature, Use and Acquisition of Managerial Skills and other Attributes

Abstract: This paper is concerned with two questions: 1 What are the kinds of skills and other qualities in managers that contribute to managerial success and performance in various forms? 2 To what extent are these acquired by learning, and what are the sources of such learning? The aim is to propose and test a general framework or taxonomy describing what managers might need to learn, and to understand from where existing managers have acquired the skills and qualities they currently use. This further allows us to draw some conclusions about the part played by deliberate training and education activities, in comparison with ‘natural’ ones, in the development of managers. The paper considers and reports in turn on existing theories and research relevant to managerial qualities, a hypothetical model of such qualities, an empirical test of the models, and the results of a study of the sources involved in the acquisition of specific qualities contributing to successful management actions in a sample of managers.

A Critique of Empirical Studies of Relations Between Market Structure and Profitability

Abstract: A LARGE number of empirical studies of relations between market structure and profitability have appeared since Bain's seminal work [i]. While there has not been an absence of disputation about the results, it seems fair to say that at present the 'conventional wisdom' gained from the studies is that a positive relationship exists between industrial concentration and profits, particularly when concentration exceeds some critical limit and when there are substantial barriers to industry.' It is not the purpose of this paper to add yet another review of this literature. Neither is it the purpose to argue whether the positors of the 'conventional wisdom' or their critics are correct. Rather, the purpose is to examine some basic empirical questions in more detail than have the authors, their reviewers or their critics. The section which follows concerns the theoretical foundations of the studies. That is, questions are raised about model specification. The next section deals with data problems and leads rather directly to the last substantive section, which treats problems of identification. The conclusion is that there is little basis from theory or from the empirical work to hold fastly to one view or another.

An Empirical Study of Some Spatial Interaction Models

Abstract: This paper attempts to focus attention away from a mathematical and theoretical perspective to one where empirical and statistical aspects can assume greater significance. The need for this change of emphasis is demonstrated by the results of an empirical study of a selection of nine spatial-interaction models. Not only do the theory-based models fail to achieve significantly better levels of performance than some empirically derived models, but both types of model fail to achieve satisfactory levels of descriptive performance. These models are shown to be sensitive to the choice of calibration procedure and various kinds of errors in the constant and independent variables. It is suggested that the use of these models should always be accompanied by estimates of confidence limits, and that there is an urgent need for the development of new model designs which can at least provide accurate descriptions of observed reality.

Some Conceptual and Methodological Issues in Expectancy Models of Work Performance Motivation

Abstract: Expectancy-type models are the dominant paradigm for research in work-related motivation, although empirical support for these models has been uneven. Part of the variability of empirical support is probably due to problems of concept and methodology associated with these formulations. Drawing on the critical literature, the apparent central problems are identified and directions for their resolution are suggested.

A review of occupational preference and choice research using expectancy theory and decision theory

Abstract: Expectancy theory and decision theory are described as models that can be used to predict occupational preference and choice. The empirical research using these models is reviewed and found to be highly supportive. Every investigation showed considerable support for the model being tested. The implications for practice and further research are discussed.

Research paradigms in computer science

Abstract: This paper explores the ramifications of four influential definitions of computer science:1. Computer science is the study of phenomena related to computers, Newell, Perlis and Simon, 19672. Computer science is the study of algorithms, Knuth, 19683. Computer science is the study of information structures, Wegner, 1968, Curriculum 684. Computer science is the study and management of complexity, Dijkstra, 1969.The first definition reflects an empirical tradition since it asserts that computer science is concerned with the study of a class of phenomena. The second and third definitions reflect a mathematical tradition since algorithms and information structures are two abstractions from the phenomena of computer science. The fourth definition reflects the great complexity of engineering problems encountered in managing the construction of complex software-hardware systems. It is argued in section 1 that computer science was dominated by empirical research paradigms in the 1950s, by mathematical research paradigms in the 1960s and by engineering oriented paradigms in the 1970s. Section 2 illustrates how these three phases of development are reflected in the field of programming languages.The remaining sections consider in greater detail how empirical, mathematical and engineering research paradigms have affected the development of computer science. Section 3 indicates that although the phenomena of computer science are created by man they can be studied using the empirical techniques of the natural sciences. Section 4 distinguishes between “micro computer science” concerned with the study of individual algorithms and “macro computer science” concerned with the study of mechanisms and notations for specifying all algorithms; and between intensional “how” specifications and extensional “what” specifications for programs and computing systems. Section 5 distinguishes between the uses of the term “complexity” in software engineering and the analysis of algorithms and suggests that different terms be used to denote these two kinds of complexity. In a final section it is argued that the diversity of research paradigms in computer science may be responsible both for our difficulties in deciding how computer scientists should be trained and for divergences of opinion concerning the nature of computer science research.

Environmental Preference Migration: A Review

Abstract: ORE than twenty years ago Edward Ullman suggested that much of the interregional migration in the United States could be explained by individual preferences for a "pleasant" climate and for other aspects of a desirable natural environment.' Although the general thesis was not new,2 this was the first comprehensive discussion of the subject. Ullman's pioneering article was greeted with considerable interest, but aside from brief references or perfunctory footnotes, the topic has not been well developed in the cognate literature, with a few notable exceptions that merely highlight the lack of research. Whatever the basis for the prevailing inattention to environmental preference migration, a thorough review is long overdue. This survey encompasses work in areas most immediate to the topic and offers suggestions for future research. The superficial appearance of the review as a pastiche of research findings is only too accurate a reflection of the piecemeal work to date. From the many disparate insights, I hope to construct the beginnings of a coherent understanding of the role of environmental preferences in interregional migration. It is important to recognize at the outset that workers in this area have made contributions based on widely divergent approaches usually stemming from distinct disciplinary focuses in which subject matter and relevant data, methodologies of investigation, permissible theory, and scale of analysis combine to produce characteristic kinds of results. Although there is a considerable degree of overlap, three general types of research can be discerned: behavioral (or survey) work, regional economic theory, and empirical tests of aggregate migration patterns. I deal first with behavioral approaches that primarily employ survey research to elucidate the reasons behind individual migration decisions. These behavioral approaches have been the most instrumental in helping to expand our knowledge of environmental preference migration. The challenge that this kind of migration poses for traditional regional economic theory is then explored with special attention to the incorporation of behavioral research findings. Finally, aggregate tests of the preference migration hypothesis, in the form of empirical studies of observed migration patterns, reveal consistent support despite probable underestimation owing to methodological bias.

Organizational Strategies and Interorganizational Networks

Abstract: The organization set is a basic concept for analyzing the relations between an organization and its environment. This article pro vides a theoretical basis for using it to study the way that organizations adapt their environments to their own needs, rather than responding to situational demands. First, the network of interorganizational relations is conceptualized in terms of dimensions of social integration. Subsequently, organizational strategies appropriate for dealing with problematical aspects of organization set integration are identified. The character-defining consequences of the combination of strategies an organization uses are illustrated from an empirical study of the National Economic Development Office.

The Socially Conscious Consumer-Another Look at the Data

Abstract: Several researchers have attempted to construct models of the socially and ecologically conscious consumer and subject them to empirical test, but results have been largely disappointing. The author looks at the most recent of these attempts and uses its “negative” findings to construct a model which is more sensitive to the political dimensions of consumption activities.

Are Status Offenders Really So Different?: A Comparative and Longitudinal Assessment

Abstract: Numerous authorities have argued convincingly that what have been termed "status offenses" should be removed from the jurisdiction of the juvenile court. Perhaps the most cogent rationale that has been advanced in this regard flows directly from the statutory and procedural inequity that is clearly demonstrated by this vaguely defined set of offenses.Unfortunately, many advocates of reform have gone on to argue that a substantial body of empirical research has shown that (1) status offenders are not a significant threat to society because they have not been and generally will not become involved in more serious offenses and (2) any movement toward more serious involvement stems more from the stig matizing consequences of formal legal processing than from any other source. Such assertions are based on insufficient or nonexistent empirical evidence. Indeed, this analysis, based on an examination of the offense histories of a large sample of juveniles who appeared before one of two urban juvenile courts on o...

Proposals for a program of empirical research into the properties of triangles

Abstract: Physical geometry is viewed in this essay as the prototype of a successful generalizing empirical science. Suppose that physical geometry had been studied in ancient Egypt by empirical methods similar to those commonly used today by many researchers seeking general propositions useful in explaining, predicting, or controlling phenomena of interest to practicing managers. Would these methods have produced valid and useful geometric generalizations? This intriguing question is explored in Part I by means of a parable which suggests a negative answer to the question. The reasons for this negative conclusion are developed in Part II. In the successful generalizing sciences, general propositions (or theory) have not been the result of an a posteriori“induction” from observational data, but rather the result of an a priori“construction” of a framework for the coordination of measurement operations. Such a framework, whether explicitly articulated or not, is a necessary condition for the collection of coherent and reproducible observational data and, therefore, for explanation, prediction, and control of phenomena. Yet, despite its a priori character, an acceptable framework or theory must be “empirical” in Popper's sense of being subject to refutation by observation. If the framework is logically prior to data, however, what is its source? In the successful generalizing sciences, it is argued in Part III, theories have been generalized not from data but from the skills—the coordination of operations—of practitioners. This genesis “explains” the success of the sciences, because an effective skill includes within itself tests of its range of applicability and adapts itself to changing conditions. A discussion of the implications of this argument for making management “scientific” concludes the essay.

Some behavioral aspects of budgeting for control: An empirical study

Abstract: The research reported in this article empirically evaluated the relationships between perceived participation in the budget process, perceived reward dependency of budget performance, and perceived attainability of the budgeted goals, and the dependent variable of motivation to achieve the budget. The results indicated that there were two dimensions to a manager's effort expended (motivation) to achieve the budgeted goals for which he is responsible; they are a goal-directing effort and an evaluative effort. It was found that perceived participation had the most significant relationship with the goal-directing effort, whereas perceived reward dependency had the most significant relationship with the evaluative effort. The relationships between perceived attainability and both dimensions of effort expended (motivation) were either not significant or only moderately significant.

Service Performance of Insurance Distributors

Abstract: This article examines whether the independent agents provide better service to their customers than sole representatives of direct writers. Results of a survey of a sample of both types of insurance agents indicate that even though the former apparently excel on some service dimensions, the latter perform as well as or even better than the independent agents on other dimensions. The emergence of the direct writing insurers as major suppliers has been one of the most important changes which has occurred in the property and liability insurance industry in the past two decades. The direct writers, who in the thirties controlled only a small part of the market, today control over thirty percent and in some specific areas of property and liability insurance, e.g. automobile insurance, write well over fifty percent of the premium volume.' Several studies indicate that a major advantage of the direct writers has been their ability to reduce acquisition costs well below industry's averages, largely by paying lower commission rates. According to the Stanford Report, in the 1960-1965 period, the direct writers had an average expense ratio of 21-23 percent as compared to 33-35 percent for all stock companies. The lower expense costs allowed the direct writers to experience lower than average combined ratios and to achieve underwriting profits.2 A frequent argument is that the direct writers could pay lower commission rates because their distributors provide less service to their customers than do the independent agents. This point of view was summed up by Mehr as follows: Independent insurance agents and brokers for example argue that they are needed for creative selling, to give personalized risk management counsel Michael Etgar is Assistant Professor in the School of Management, State University of New York at Buffalo. Dr. Etgar has published not only in The Journal of Risk and Insurance but also in the Journal of Marketing Research, Journal of Industrial Economics and the Journal of Business Research. This paper was submitted for publication in final form in April, 1976. ' See Paul L. Joskow, "Cartels, Competition and Regulation in the Property and Liability Insurance Industry," Bell Journal of Economics and Management Science, Vol. 4, 2 (Autumn 1973) 375-427; and, The Future of the Independent Agent prepared by the Stanford Research Institute (known as the Stanford Report) (New York: The National Association of Insurance Agents, 1967) 4. 2 Stanford Report, Table 16. ( 487 ) This content downloaded from 207.46.13.114 on Thu, 26 May 2016 06:05:10 UTC All use subject to http://about.jstor.org/terms 488 The Journal of Risk and Insurance to prospective insureds, to find adequate markets for needed coverages and to aid in loss adjusting.3 The independent agents thus have been depicted as providers of a variety of personalized services tailored to the individual needs of specific insurance buyers. The direct writers on the other hand were perceived as mass merchandisers who sacrifice personalized service for the sake of lower costs and prices. Yet to what extent is such differentiation correct? Do independent agents provide better service than the representatives of the direct writers? So far, no attempts have been made to test the issue empirically; statements made on the subject usually reflect impressions or hypothetical argumentations. The absence of empirical research on this issue reflects the inherent difficulties which face any scholar who attempts to measure the services that insurance agents provide to their customers. While the notion of such services is intuitively patent, expression of the concept through measurable and quantifiable variables is both highly complex and controversial. This article treats the complex issue of measurement and then proceeds to compare the service performance of independent insurance agents and of sole representatives of direct writers. The data used were developed from a survey of insurance distributors of both types. The methodological complexities involved suggest that the study is exploratory and should be so viewed. Its major purpose primarily is to indicate that empirical research on these issues is feasible and to encourage further research and discussion. The hope is that this discussion will help clarify to insurance suppliers, distributors, regulators, and the public, the nature of the services provided by insurance distributors to their customers. Also, hopefully, it will help determine the relative performance of the different types of insurance distributors in providing customer services.