Economics Insights @ CBS

This article explains how the metric, Customer Value Added (CVA), can be applied to develop effective marketing and branding strategies. Strategies that are successful against competitors should focus on creating CVA that is greater than those produced by competitors. To do so, one must first regularly measure and monitor CVA by examining its components, perceived value and variable costs per unit. Next, one must develop strategies and tactics to increase CVA effectively and efficiently. In the long run, the organization that succeeds in achieving and maintaining the highest CVA wins.

Organized groups face a fundamental problem of how to distribute resources fairly. We found people view it as less fair to distribute resources equally when the allocated resource invokes the market by being a medium of exchange than when the allocated resource is a good that holds value in use. These differences in fairness can be attributed to being a medium of exchange, and not to other essential properties of money (i.e., being a unit of account or a store of value).

The authors propose that gender differences in negotiations reflect women's contextually contingent impression management strategies. They argue that the same behavior, bargaining assertively, is construed as congruent with female gender roles in some contexts yet incongruent in other contexts. Further, women take this contextual variation into account, adjusting their bargaining behavior to manage social impressions. A particularly important contextual variable is advocacy—whether bargaining on one's own behalf versus on another's behalf.

This article complements the structural New Keynesian macro framework with a no-arbitrage affine term structure model. Whereas our methodology is general, we focus on an extended macro model with unobservable processes for the inflation target and the natural rate of output that are filtered from macro and term structure data. We find that term structure information helps generate large and significant parameters governing the monetary policy transmission mechanism. Our model also delivers strong contemporaneous responses of the entire term structure to various macroeconomic shocks.