The Shape of Utility Functions and Organizational Behavior

Based on measurements with 332 owner-managers, the global shape of the utility function (i.e., S-shaped versus concave or convex over the total range of outcomes) appears to discriminate organizational behavior. Whereas the degree of risk aversion, based on the local shape of the utility function, may be important in explaining owner-manager's trading behavior, the global shape of the utility function appears to drive more structural organizational behavior.utility theory;prospect theory;risk aversion;organizational behavior

Do Transaction Costs and Risk Preferences Influence Marketing Arrangements in the Illinois Hog Industry?

Risk reduction and transaction costs are often used to explain contracting in the U.S. hog industry with little empirical support. Using a unified conceptual framework that draws from risk behavior and transaction cost theories, in combination with unique survey and accounting data, we demonstrate that risk preferences and asset specificity impact Illinois producers’ use of contracts and spot markets. In particular, producers’ investments in specific hog genetics and human capital are related to selection of long-term marketing contracts over spot markets. Producers who perceive greater levels of price risk and/or are more averse are more (less) likely to use contracts (spot markets). Key words: asset specificity, contracts, hogs, risk attitude, risk behavior, risk perception, transaction costs economic

\u3ci\u3eThe story of the frontier province\u3c/i\u3e

The history of North-west Frontier is closely connected to Afghanistan. During the 18th century the area was ruled by Afghans. Between 1818 and 1834 the Sikhs occupied Peshawar with the help of the British government in India. The book covers the history of the North-West Frontier from the mid-nineteenth century of early 20th century

Consumer Food Safety Risk Attitudes and Perceptions Over Time: The Case of BSE Crisis

Recent research has shown that by decoupling the risk response behaviour of consumers into the separate components of risk perception and risk attitude, a more robust conceptualization and prediction of consumers’ reactions to food safety issues is possible. Furthermore, it has been argued that the influence of risk attitudes and risk perceptions on consumer risk behaviour for contaminated food products can be used to formulate effective agricultural policies and strategies in case of a food crisis. The question arises whether or not the influence and magnitude of these risk variables changes over time and, hence, whether policies and strategies must be adapted. The BSE (mad cow disease) crises in the USA, Germany and The Netherlands in 2001 and 2004 provided us with a natural experiment to examine the relationship between risk attitudes and perceptions and behaviour over time. The results show that in some countries consumers risk behaviour changed, whereas in others not. These results are useful to policy makers and decision makers in food industry in developing more efficient supply chain management and public policies