The determinants of successful partnering: a transaction cost perspective

Support is emerging for the assertion that partnering can have a significant beneficial influence on project relationships and project outcomes. However, not all of the evidence bears this out: there are some examples of less-than-successful experiments with partnering approaches. Questions quite naturally arise as to whether any particular elements or aspects of partnering have differed in some of the documented examples, thus giving rise to their relative success or failure. In order to answer such questions there is a need for a theoretical framework against which to analyse the relative performance of partnering projects. In this paper, the authors propose an approach based upon aspects of Transaction Cost Economics (TCE) theory. It is argued that two main factors, contractual incompletedness and opportunism, are fundamental in determining whether project relationships are adversarial or not. The validity of the approach is examined by applying it retrospectively to a strategic partnering agreement involving more than 80 individual building projects. This agreement had been the subject of a four-year study and had been found to produce benefits in a number of areas, not least in the avoidance of conflict and disputes. After analysis, evidence for the reduction of contractual incompletedness was mixed, however the opportunistic inclinations of the participants (specifically, the contractors) were effectively attenuated by a clearly observable combination of factors, which included preselection criteria, and the use of appropriate management and commercial frameworks in which to operate. The case study suggests a prima facie validity to the analytical approach that was adopted, which merits further testing: the next stages being to develop and refine the framework, and to carry out comparative multi-case research on a number of different partnering projects

Critical point for the strong field magnetoresistance of a normal conductor/perfect insulator/perfect conductor composite with a random columnar microstructure

A recently developed self-consistent effective medium approximation, for composites with a columnar microstructure, is applied to such a three-constituent mixture of isotropic normal conductor, perfect insulator, and perfect conductor, where a strong magnetic field {\bf B} is present in the plane perpendicular to the columnar axis. When the insulating and perfectly conducting constituents do not percolate in that plane, the microstructure-induced in-plane magnetoresistance is found to saturate for large {\bf B}, if the volume fraction of the perfect conductor $p_S$ is greater than that of the perfect insulator $p_I$. By contrast, if $p_S<p_I$, that magnetoresistance keeps increasing as ${\bf B}^2$ without ever saturating. This abrupt change in the macroscopic response, which occurs when $p_S=p_I$, is a critical point, with the associated critical exponents and scaling behavior that are characteristic of such points. The physical reasons for the singular behavior of the macroscopic response are discussed. A new type of percolation process is apparently involved in this phenomenon.Comment: 4 pages, 1 figur

Lakes

Lakes have always held an aesthetic fascination for people; they figure prominently in both art and literature and have even been endowed with spiritual qualities. For example, the nineteenth century American writer Henry D. Thoreau (1854) considered a lake to be 'the landscape's most beautiful and expressive feature. It is the earth's eye; looking into which the beholder measures the depth of his own nature'. More prosaically, lakes are also of considerable geomorphological interest as dynamic landfonns originating in varied and often complex ways

Detecting signatures of balancing selection to identify targets of anti-parasite immunity.

Parasite antigen genes might evolve under frequency-dependent immune selection. The distinctive patterns of polymorphism that result can be detected using population genetic methods that test for signatures of balancing selection, allowing genes encoding important targets of immunity to be identified. Analyses can be complicated by population structures, histories and features of a parasite's genome. However, new sequencing technologies facilitate scans of polymorphism throughout parasite genomes to identify the most exceptional gene specific signatures. We focus on malaria parasites to illustrate challenges and opportunities for detecting targets of frequency-dependent immune selection to discover new potential vaccine candidates

The Basis Risk of Catastrophic-Loss Index Securities

This paper analyzes the basis risk of catastrophic-loss (CAT) index derivatives, which securitize losses from catastrophic events such as hurricanes and earthquakes. We analyze the hedging effectiveness of these instruments for 255 insurers writing 93 percent of the insured residential property values in Florida, the state most severely affected by exposure to hurricanes. County-level losses are simulated for each insurer using a sophisticated model developed by Applied Insurance Research. We analyze basis risk by measuring the effectiveness of hedge portfolios, consisting of a short position each insurer's own catastrophic losses and a long position in CAT-index call spreads, in reducing insurer loss volatility, value-at-risk, and expected losses above specified thresholds. Two types of loss indices are used -- a statewide index based on insurance losses in four quadrants of the state. The principal finding is that firms in the three largest Florida market-share quartiles can hedge almost as effectively using the intra-state index contracts as they can using contracts that settle on their own losses. Hedging with the statewide contracts is effective only for insurers with the largest market shares and for smaller insurers that are highly diversified throughout the state. The results also support the agency-theoretic hypotheses that mutual insurers are more diversified than stocks and that unaffiliated single firms are more diversified than insurers that are members of groups.