Business Commons^™

Exploring Business-To-Business Marketsites, Mark Barratt, Karsten Rosdahl

Management Faculty Research and Publications

Business-to-business (B2B) marketsites are quickly becoming one of the major issues for companies in their search for opportunities to improve visibility of their trading activities and sources of further cost reduction. The paper begins with a synthesis of potential benefits resulting from participation in marketsites and then provides a number of initial classifications of marketsites. The paper then introduces some of the major inhibitors and enablers of marketsites and views these from a number of perspectives such as the structure of marketsites, the degree of centricity and the types of products purchased through such marketsites. Finally, some recommendations for further …

Credit Rationing In The U.S. Mortgage Market: Evidence From Variation In Fha Market Shares, Brent W. Ambrose, Anthony Pennington-Cross, Anthony M. Yezer

Finance Faculty Research and Publications

This paper examines the nature of mortgage credit rationing across geographic markets and time. Particular attention is paid to the response of conventional mortgage supply to higher risk conditions associated with regional recessions. We develop a series of four indirect tests based on the spatial variation of the FHA share of mortgages, both endorsements and applications, as well as FHA and conventional rejection rates. Results of these four tests indicate that conventional mortgage underwriting criteria do not become more flexible and may even become more demanding when local economic conditions deteriorate. This result indicates the use of non-price credit rationing …

Using Benford's Law To Detect Fraud In The Insurance Industry, Meredith Maher, Michael D. Akers

Accounting Faculty Research and Publications

Benford's Law is the mathematical phenomena that states that the first digits or left most digits in a list of numbers will occur with an expected logarithmic frequency. While this method has been used in industries such as oil and gas and manufacturing to identify fraudulent activity, it has not been applied to the health insurance industry. Since health insurance companies process a large number of claims each year and these claims are susceptible to fraud, the use of this method in this industry is appropriate. This paper examines the application of Benford's Law to four health insurance companies located …

Subprime Lending In The Primary And Secondary Mortgage Market, Anthony Pennington-Cross

Finance Faculty Research and Publications

This article provides an exploratory analysis of the role of subprime lending through an examination of the spatial distribution of Federal Housing Administration (FHA)—eligible home purchase loans in the primary and secondary mortgage markets. Loan originations are aggregated to the metropolitan statistical area level to examine the proportion of the market served by FHA, prime, and subprime lenders. The article then examines whether subprime lenders hold their loans in portfolio or sell them to private conduits.

Primary market results indicate that subprime lenders are more active in cities with worse economic risk characteristics. Secondary market results indicate that although subprime …

Ethical Myopia: The Case Of "Framing" By Framing, Alan E. Singer, Steven Lysonski, Ming Singer, David Hayes

Marketing Faculty Research and Publications

No abstract provided.

A Model And Methodologies For The Location Problem With Logistical Components, Siddhartha Syam

Management Faculty Research and Publications

This paper significantly extends traditional facility location models by introducing several logistical cost components such as holding, ordering, and transportation costs in a multi-commodity, multi-location framework. Since location and logistical costs are highly inter-related, the paper provides an integrated model, and seeks to minimize total physical distribution costs by simultaneously determining optimal locations, flows, shipment compositions, and shipment cycle times. Two sophisticated heuristic methodologies, based on Lagrangian relaxation and simulated annealing, respectively, are provided and compared in an extensive computational experiment.

Rapid, Specific Determination Of Iodine And Iodide By Combined Solid-Phase Extraction/Diffuse Reflectance Spectroscopy, Matteo Arena, Marc D. Porter, James S. Fritz

Finance Faculty Research and Publications

A new, rapid methodology for trace analysis using solid-phase extraction is described. The two-step methodology is based on the concentration of an analyte onto a membrane disk and on the determination by diffuse reflectance spectroscopy of the amount of analyte extracted on the disk surface. This method, which is adaptable to a wide range of analytes, has been used for monitoring ppm levels of iodine and iodide in spacecraft water. Iodine is used as a biocide in spacecraft water. For these determinations, a water sample is passed through a membrane disk by means of a 10-mL syringe that is attached …

Extension Risk In Commercial Mortgages, Charles C. Tu, Mark Eppli

Finance Faculty Research and Publications

Historical data and Monte Carlo simulation is used to examine the likelihood of loan extension and potential losses associated with extension. It is found that extension probability is highly sensitive to property NOI growth, to NOI volatility, to the amortization schedule, and to the loan term. It is found that extension risk is largely unaffected by changing credit spreads, changing yield curve assumptions, and changing term default assumptions. It is found that changing the underwriting standards affects the probability of loan extension in a somewhat muted way. It is estimated that the loss during extension is approximately 2%-3% of the …

Cultural Values And Important Possessions: A Cross-Cultural Analysis, John Watson, Steven Lysonski, Tamara Gillan, Leslie Raymore

Marketing Faculty Research and Publications

The logic behind globalized advertising appeals is based on the premise that cultural value systems are converging. Yet, there is no clear agreement regarding the superiority of standardized campaigns vs. localized ones. One reason for this lack of agreement deals with the extent to which various cultures share similar values. The goal of this study is to apply a relatively new framework dealing with value differences developed by Schwartz [Adv. Exp. Soc. Psychol. 25 (1992) 1.] to New Zealand and the USA by looking at the connection between these values and possessions. The hypotheses received mix support. The results confirm …

Understanding The Interfaces: How Ocean Freight Shipping Lines Can Maximize Satisfaction, Srinivas Durvasula, Steven Lysonski, Subhash Mehta

Marketing Faculty Research and Publications

Physical distribution services are becoming increasingly important as supply chains strive to become more efficient in the logistical flow of goods to industrial customers. Performance of these services, however, takes place during encounters that customers have with various interfacing departments within the firm. These encounters may ultimately determine the level of satisfaction clients have with the service and the concomitant perceived quality. While previous research in this area has focused on service quality assessment, little attention has been given to determining the pattern of interfacing departments that maximize service satisfaction. This study examines a sample of shipping managers in Singapore …

Public Perceptions Of The Midwest’S Pavements: Policies And Thresholds, David Kuemmel, Richard Robinson, Ronald C. Sonntag, Robert Griffin, James K. Giese

Marketing Faculty Research and Publications

A 5-year, pooled fund study with the Iowa, Minnesota, and Wisconsin departments of transportation assessed the public's perceptions of pavement improvement strategies and developed thresholds of satisfaction using the departments' physical indices, such as pavement ride and condition on rural, two-lane highways in the states. Approximately 3,600 drivers in the three states were involved in the three phases of the project, which included 18 focus groups, 400 statewide surveys in each state, and 2,300 targeted surveys across the three states. A multidisciplinary team from Marquette University and a mass media survey lab conducted the studies. A summary of focus group …

The Relationship Between Cost Analysis And Program Management, William K. Stockman, Joseph T. Kammerer, David R. King, Steve G. Green, Michael A. Greiner

Management Faculty Research and Publications

Cost analysis if often viewed as applying basic principles and cost methodologies to determine total system cost. These finished estimates then flow into a decision making process and the cost estimator leaves the stage. Reality shows that the cost estimator is actually one of the main contributors to the decision making process. Our introduction to this special issue explores the areas where cost estimating plays a major role in program management in areas beyond the normal program estimate. We have included articles that show the key role estimators can play in source selection strategies and evaluation; cost of delay analysis …