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Article
Publication date: 7 September 2015

Thomas W. Sproul, Jaclyn D. Kropp and Kyle D. Barr

Community supported agriculture (CSA) programs allow consumers to buy a share of a farm’s production while providing working capital and risk management benefits for…

Abstract

Purpose

Community supported agriculture (CSA) programs allow consumers to buy a share of a farm’s production while providing working capital and risk management benefits for farmers. Several different types of CSA arrangements have emerged in the market with terms varying in the degree to which consumers share in the farm’s risk. No-arbitrage principles of futures and options pricing suggest that CSA shares should be priced to reflect the degree of risk transfer. The paper aims to discuss these issues.

Design/methodology/approach

The authors evaluate the three most common share types using a cross-sectional data set of 226 CSA farms from New England to determine if there is empirical evidence in support of the theoretical price relationship between share types.

Findings

The degree of risk transfer from farmers to consumers has a significant effect on the share price. There are statistically significant returns to scale and higher prices for organics. Farm characteristics and product offerings predict which type of shares is offered for sale.

Research limitations/implications

The data set does not contain information pertaining to actual deliveries, expected deliveries, variance of expected deliveries, or covariance information; thus differences in share prices could be due to differences in these uncontrolled factors.

Originality/value

This paper provides empirical evidence that CSA share prices reflect the degree of risk transferred from the producer to the consumer. It also highlights challenges in conducting empirical work pertaining to CSA contracting.

Details

Agricultural Finance Review, vol. 75 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

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Article
Publication date: 3 May 2016

Thomas W. Sproul

Turvey (2007, Physica A) introduced a scaled variance ratio procedure for testing the random walk hypothesis (RWH) for financial time series by estimating Hurst…

Abstract

Purpose

Turvey (2007, Physica A) introduced a scaled variance ratio procedure for testing the random walk hypothesis (RWH) for financial time series by estimating Hurst coefficients for a fractional Brownian motion model of asset prices. The purpose of this paper is to extend his work by making the estimation procedure robust to heteroskedasticity and by addressing the multiple hypothesis testing problem.

Design/methodology/approach

Unbiased, heteroskedasticity consistent, variance ratio estimates are calculated for end of day price data for eight time lags over 12 agricultural commodity futures (front month) and 40 US equities from 2000-2014. A bootstrapped stepdown procedure is used to obtain appropriate statistical confidence for the multiplicity of hypothesis tests. The variance ratio approach is compared against regression-based testing for fractionality.

Findings

Failing to account for bias, heteroskedasticity, and multiplicity of testing can lead to large numbers of erroneous rejections of the null hypothesis of efficient markets following an independent random walk. Even with these adjustments, a few futures contracts significantly violate independence for short lags at the 99 percent level, and a number of equities/lags violate independence at the 95 percent level. When testing at the asset level, futures prices are found not to contain fractional properties, while some equities do.

Research limitations/implications

Only a subsample of futures and equities, and only a limited number of lags, are evaluated. It is possible that multiplicity adjustments for larger numbers of tests would result in fewer rejections of independence.

Originality/value

This paper provides empirical evidence that violations of the RWH for financial time series are likely to exist, but are perhaps less common than previously thought.

Details

Agricultural Finance Review, vol. 76 no. 1
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 2 May 2017

Thomas Sproul and Clayton P. Michaud

Prospect theory is now widely accepted as the dominant model of choice under risk, but has not been fully incorporated into applied research because of uncertainty about…

Abstract

Purpose

Prospect theory is now widely accepted as the dominant model of choice under risk, but has not been fully incorporated into applied research because of uncertainty about how to include population-level parameter estimates. The purpose of this paper is to characterize heterogeneity across people to lay a foundation for future applied research.

Design/methodology/approach

The paper uses elicitation data from field experiments in Vietnam to fit a finite Gaussian mixture model using the expectation maximization algorithm. Applied results are simulated for investment allocations under myopic loss aversion.

Findings

The authors find that about 20 percent of the sample is classified as extremely loss averse, while the rest of the population is only mildly loss averse. This implies a bimodal distribution of loss aversion in the population.

Research limitations/implications

The data set is only moderately sized: 181 subjects. Future research will be needed to extend these results out of sample, and to other regions.

Originality/value

This paper provides empirical evidence that heterogeneity matters in prospect theory modeling. It highlights how policy makers might be misled by assuming that average prospect theory parameters are typical within the population.

Details

Agricultural Finance Review, vol. 77 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Abstract

Many jurisdictions fine illegal cartels using penalty guidelines that presume an arbitrary 10% overcharge. This article surveys more than 700 published economic studies and judicial decisions that contain 2,041 quantitative estimates of overcharges of hard-core cartels. The primary findings are: (1) the median average long-run overcharge for all types of cartels over all time periods is 23.0%; (2) the mean average is at least 49%; (3) overcharges reached their zenith in 1891–1945 and have trended downward ever since; (4) 6% of the cartel episodes are zero; (5) median overcharges of international-membership cartels are 38% higher than those of domestic cartels; (6) convicted cartels are on average 19% more effective at raising prices as unpunished cartels; (7) bid-rigging conduct displays 25% lower markups than price-fixing cartels; (8) contemporary cartels targeted by class actions have higher overcharges; and (9) when cartels operate at peak effectiveness, price changes are 60–80% higher than the whole episode. Historical penalty guidelines aimed at optimally deterring cartels are likely to be too low.

Details

The Law and Economics of Class Actions
Type: Book
ISBN: 978-1-78350-951-5

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Article
Publication date: 1 February 1956

WE seem to be immediately facing a drive for much more technical education and for many more technical colleges and schools to produce it. In the condition of the world…

Abstract

WE seem to be immediately facing a drive for much more technical education and for many more technical colleges and schools to produce it. In the condition of the world today this is an inevitable, an indispensable, process. The reasons are loudly proclaimed and patent to every librarian, and the library must come strongly, as it always has, into the picture but perhaps now more universally and with greater intensity. Dr. Chandler, who is proceeding at a rare pace to specialize his departments, has created a new local council to unify the information work that has already been done at Liverpool. Every technical book costing over five shillings is bought, and the usual collections of periodicals and other material of technical and industrial interest are being increased and a bulletin of additions is being issued soon after the end of each month. The Technical library is one that combines lending and reference activities, telephone and postal services; in fact all the orthodox activities that have been standard in the larger towns since Glasgow began them in 1916, and possibly new and extended ones. The William Brown Library which was destroyed in Air Raids is being reconstructed and the enlarged Technical Library will be developed in it. This is one city only; every large city reports some increase in the services rendered, for example the Telex service is now available at Manchester. It is essential that public libraries everywhere realize the part they may play; if they do not, the suggestion made recently that the lending of technical books should become an activity of the Technical Colleges may become a reality.

Details

New Library World, vol. 57 no. 7
Type: Research Article
ISSN: 0307-4803

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Article
Publication date: 1 February 2000

Jill M. Purdy, Pete Nye and P.V. (Sundar) Balakrishnan

Our need to understand the impact of communication media on negotiation is growing as technological advances offer negotiators more communication options. As access to…

Abstract

Our need to understand the impact of communication media on negotiation is growing as technological advances offer negotiators more communication options. As access to technologies such as computer chat and videoconferencing increases, negotiators are choosing to use or to avoid these media without knowing the impact of their choices on negotiations. This research assesses objective and subjective negotiation outcomes, such as profit and outcome satisfaction, across four communication media with varying levels of media richness (face‐to‐face, videoconference, telephone, and computer‐mediated communication). A conceptual framework is offered to illustrate how media richness impacts objective and subjective outcomes. Results suggest that media richness affects required bargaining time, outcome satisfaction and the desire for future negotiation interaction. Thus, the communication media for negotiations should be chosen with care.

Details

International Journal of Conflict Management, vol. 11 no. 2
Type: Research Article
ISSN: 1044-4068

Content available
Article
Publication date: 2 May 2017

Ashok K. Mishra and Charles B. Moss

Abstract

Details

Agricultural Finance Review, vol. 77 no. 1
Type: Research Article
ISSN: 0002-1466

Abstract

Details

Agricultural Finance Review, vol. 76 no. 1
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 1 February 2005

Carlos M. Rodríguez

Understanding how managers in position of leadership experience culture is essential to avoid instability and poor performance in international strategic alliances. This…

Abstract

Purpose

Understanding how managers in position of leadership experience culture is essential to avoid instability and poor performance in international strategic alliances. This study tests the proposition that national culture, top management team culture, and manager's personality influence leadership and shapes intercultural fit through the predominant management style in US‐Mexican strategic alliances.

Design/methodology/approach

Strategic leadership and personality theories constitute the framework for this study. Managers from the US‐Mexican strategic alliances which partners hold an equity position were surveyed and provided data to test the hypotheses.

Findings

Findings show that American and Mexican managers construct their own social reality with rules and norms bounded primarily by the existing organizational culture in the alliance. Both managers' management styles are similar and converge into a participative “consultative” style emerging as a “third culture” characterized by task innovation and emotional concern as American managers' input and task support and social relationships as Mexican managers' contribution. This study suggests that if adequately balanced, individualism‐collectivism is a source of intercultural fit while building shared leadership.

Practical implications

Managers of international alliances may reconfigure individual and cultural orientations and styles of alliance partners in the design of management teams to build high levels of social effectiveness. The innovator style of American managers supports the dynamics of change for the alliance to advance while the adaptor style of Mexican managers builds stability, order, and maintains group cohesion and cooperation.

Originality/value

Intercultural fit in international strategic alliances is achieved through designing organizational cultures that incorporate partners' cognitive diversity into the relationship.

Details

International Marketing Review, vol. 22 no. 1
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 30 September 2013

David Thomas Weir

– This article aims to draw on analysis of embodied plays in the game of association football to show the central significance of embodied spatial competence.

Abstract

Purpose

This article aims to draw on analysis of embodied plays in the game of association football to show the central significance of embodied spatial competence.

Design/methodology/approach

The paper is descriptive and theoretical.

Findings

Describes the special skills of unusually talented performers like dancers and midfield soccer players who appear to understand embodied movement in three-dimensions, and considers whether these attributes are transferable to business decision making.

Research limitations/implications

No original research is reported but suggestions for areas of further study are made.

Practical implications

If senior managers were able to learn such skills, the practice of strategy formulation and review could be better understood as embodied rather than as embrained.

Social implications

Developing strategy as performance could enhance organisational competence.

Originality/value

These concepts have not previously been applied in organisational analysis.

Details

Society and Business Review, vol. 8 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

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