Exchange rate pass-through: A generalization

The extent of exchange rate pass-through has been playing an increasingly pivotal role in the transmission of exchange rate shocks and adequate policy responses. We develop a model of exchange rate pass-through that allows the stochastic process of exchange rate to include the lagged values of the velocity of money. We show that the likelihood and extent of pass-through is sensitive to the lagged response.     

Factor price equalization beyond a “cubic” world

Summary. The importance of factor price equalization (FPE) is widely recognized in economics. The FPE theorem states that, absent any factor intensity reversal, factor prices are equal across countries with identical technologies and product mixes. In a two-factor-two-good-two-country Heckscher-Ohlin model this is equivalent to countries factor endowments being contained in the diversification cone defined by goods factor intensities. This paper identifies a condition, stated in terms of the allocation of factor endowments across countries relative to the demand for and the factor intensities of goods, that is necessary and sufficient for FPE in a world with arbitrary number of countries, goods and factors.Received: 16 July 2004, Revised: 10 January 2005, JEL Classification Numbers: F1.     

Does it pay to acquire technological firms?

Abstract The paper focuses on several research questions: How do the firms differ in terms of their strategic objectives for foreign acquisitions? What are the determinants of ‘success’ of acquisition? What are the differences between the American and German firms in terms of their acquisition strategies and successes? Our special interest was to get a closer look into the technological motive of the foreign acquisitions. This made a two-step procedure necessary. A first survey of 86 firms had to identify those acquisitions which were motivated by technological interests through a questionnaire. Findings: There are four classes of companies with different motives for acquisitions: Market oriented entrepreneurs, Short-term profit seekers, Technological acquirers, Preemptive market protectors. The second survey investigated the process and the results of acquisitions with a special view on the role of research and development through 60 interviews in 30 acquisition cases in both acquiring and acquired units. Findings: A network of variables explains the success. The most important are context variables (uncertainty, cultural differences), size of both firms, low degree of formalization, expertise, and lack of conflicts about technological philosophy.     

A simple game-theoretic analysis of peering and transit contracting among Internet service providers

The paper presents a simple game-theoretic model of two Internet service providers (ISPs), drawn from a larger set consisting of Tiers-1 and -2 ISPs, who choose between peering and transit agreements. The study focuses on the costs of interconnection taking into account traffic imbalances. The analysis suggests that if the traffic flows and the costs of interconnection are fairly shared, the provider's peer, otherwise they choose transit. Moreover, the joint profits are maximized under the transit arrangement.     

Some concepts of technology transfer: adoption of innovations in organizational context

This paper is based on the review of literature on technology transfer and diffusion of innovations. Models and propositions developed by scholars in various disciplines were analyzed. The definitions and concepts frequently encountered in the literature were discussed to understand the process of technology transfer at various levels. Problems of inter-organizational technology transfer were discussed at length.     

The information industry for the industrial marketer

The authors explore the nature and structure of the information industry supplying the industrial product market. They examine the means by which current scientific and technological information can be obtained, and the implication for industrial users.     

The influences of consumer innovativeness and consumer evaluation attributes in the purchase of fashionable ethnic wear in India

This paper highlights the consumer motivations for purchase of an innovative product like fashionable ethnic wear in India. It attempts to combine consumer innovativeness constructs and consumer evaluation attributes to understand buying behaviour in fashionable ethnic wear through a consumer survey. It confirms the relationship between product usage (the number of brands bought) and ethnic wear domain‐specific innovativeness. It also explores the correlations among different dimensions of consumer innovativeness like domain‐specific innovativeness, optimum stimulation level and consumers' need for uniqueness constructs. It shows the difference in importance attached to the chosen consumer innovativeness constructs and consumer evaluation attributes by buyers and non‐buyers in the purchase process.     

Stock prices and merger movements: Interactive relations

Zusammenfassung Die wechselseitigen Beziehungen zwischen Aktienkursen und Firmenzusammenschlüssen. - Der Aufsatz untersucht die Beziehungen zwischen Firmenzusammenschlüssen und makro?konomischen Variablen. Es werden Kausalit?tstests mit US-Daten der Periode 1919–1979 durchgeführt, die zeigen, da? Zusammenschlüsse und Aktienkurse in derselben Periode aufeinander einwirken und da? keine Lead- oder Lag-Beziehungen bestehen. Die Zeitreihenanalyse deutet darauf hin, da? die Reihe der Zusammenschlüsse einem autoregressiven Proze? 2. Ordnung folgt, die „random walk”-Hypothese also abzulehnen ist.

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Résumé Cours des actions et mouvements de fusion: Relations interactives. - Dans cet article l’auteur examine la relation entre des mouvements de fusion et des variables macro-économiques. Après avoir testé la causalité avec des données des E.U. pour la période 1919–1979, l’évidence démontre que l’activité de fusion et les cours des actions interagissent dans la même période et ne revèlent pas une relation d’avance ou à retard. L’analyse des séries chronologiques indique que la série de fusion suit un processus AR (2), refusant l’hypothèse de ?random walk?.

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Resumen Precios de valores bursátiles y la pauta de fusiones: relaciones interactivas. - En este trabajo se examina la relación entre la pauta de fusiones y variables macroeconómicas. Los resultados de tests de causalidad utilizando datos de los EE UU para el período 1919–1979 muestran que las fusiones y los precios de las acciones interactúan en forma comtemporánea y no revelan rezago o adelanto alguno. El análisis de series de tiempo indica que las series de fusiones responden a un proceso AR(2), lo cual significa un rechazo de la hipótesis del ?random walk?.

     

Targeting technical information to organizational positions

This article describes the importance of scientific and technical information for the technical personnel at various organizational hierarchies and how these people satisfy their information needs. Inter- and intraorganizational channels used for information acquisition are discussed. Implications of these channels are discussed for industrial marketing.