Economics Insights @ CBS

This guest editorial of JAR considers what the "new normal" of marketing will be and suggests that it will be the digitization of everything, the need for constant change and adaptation affected by the continuous flow of knowledge. Involving consumers in co-creation will be increasingly important, while raw data for market research has increased massively and so will require the tools and people to mine it.

The past 25 years have represented two periods of extreme movements in U.S. and global house prices that appear to be much larger than can be easily explained by changes in fundamentals. These episodes spurred research on housing bubbles that focused attention on the role of outsized expectations in excessive house price appreciation. By contrast, some economists pointed to alternative explanations for excess volatility, including liquidity constraints, lending cycles, search externalities, and zoning delays.

In many service industries, companies compete with each other on the basis of the waiting time their customers experience, along with other strategic instruments such as the price they charge for their service. The objective of this paper is to conduct an empirical study of an important industry to measure to what extent waiting time performance impacts different firms' market shares and price decisions.

The current research explored whether sharing intentionality leads to implicit coordination, a situation in which isolated individuals independently adopt a similar standard of behavior. We propose that knowing that a given goal is experienced in common with other in-group members or similar others intensifies goal pursuit. Two experiments examined whether simply being aware that one's own individual goal was also being separately pursued by similar others results in more goal-congruent behavior.

Will Rogers, commenting on the Depression, famously quipped: "If stupidity got us into this mess, why can't it get us out?" Rogers's rhetorical question has an obvious answer: persistent stupidity fails to recognize prior errors and, therefore, does not correct them. For three decades, many financial economists have been arguing that there are deep flaws in the financial policies of the U.S.