This paper considers whether stock price elasticity affects corporate financial decisions. Basic economic principles and the existing theoretical literature predict that firms choosing the Dutch auction instead of the fixed price tender offer should be those firms expecting to face greater stock price elasticity.
Consumers make multi-category decisions in a variety of contexts such as choice of multiple categories during a shopping trip. While complementarity gives managers some control over consumers' buying behavior, co-occurrence or co-incidence is less controllable. Other acts that may affect multi-category choice may be household preferences or household demographics. Not accounting for these 3 factors simultaneously could lead to erroneous inferences.
Documents cultural differences in how individuals represent the social world. The authors' primary claim is that in European American cultural contexts the boundary between the self and another person (any other person) is primary, whereas in East Asian cultures the boundary between the ingroup (the self and other members of important groups) and the outgroup is primary. To test this claim, they adapted a number of research paradigms that have been used to demonstrate self-other differences among members of Western cultures and added a distinction between ingroup and outgroup others.
Different theories, areas of substantive interest, and methods are needed to prevent consumer behavior from becoming increasingly isolated and of marginal relevance in market research. More progress will be made by focusing on relatively underresearched areas, such as: 1. focus on time, 2. the adaptive consumer, and 3. relevant dependent variables. Avenues for substantive focus include: 1. important decisions, 2. not just price and advertising, and 3. the impact of major events. Issues that arise with respect to the methods used to study consumer behavior include: 1.
This paper studies an incomplete contracting model to compare the effectiveness of alternative transfer pricing mechanisms. Transfer pricing serves the dual purpose of guiding intracompany transfers and providing incentives for upfront investments at the divisional level. When transfer prices are determined through negotiation, divisional managers will have insufficient investment incentives due to "hold-up" problems. While cost-based transfer pricing can avoid such "hold-ups", it does suffer from distortions in intracompany transfers.
The author argues that trade liberalization must be balanced in agenda, process and outcomes, including not only sectors in which developed countries have a comparative advantage, like financial services, but also those in which developing countries have a special interest, like agriculture and construction services. Account must be taken of the marked disadvantage that developing countries have in participating meaningfully in negotiations.
The author argues that making markets work requires sound financial regulation, competition policy and policies to facilitate the transfer of technology and to encourage transparency, some fundamental issues neglected by the Washington consensus.
We describe effective time partitioning heuristics for dynamic lot-sizing problems in multiitem and multilocation production/distribution systems. In a time-partitioning heuristic, the complete horizon of (say) N periods, is partitioned into smaller intervals. An instance of the problem is solved, to optimality, on each of these intervals, and the resulting solution coalesced into a solution for the complete horizon. The intervals are selected to be of a size which permits the use of exact and effective solution methods (e.g., branch-and-bound methods).
In this chapter, we provide a survey of analytical models which can be used to assess the benefits and costs associated with delayed product differentiation in a large variety of settings.