Royalty licensing

Most patent licensing agreements observed empirically include either per-unit or ad valorem royalties. The theoretical literature generally focuses on per-unit royalties. We provide a simple justification for the presence of ad valorem royalties in licensing contracts.     

Some insights on conceptualizing and measuring service quality

We discuss past work in the conceptualization and measurement of perceived service quality and describe the most important models proposed in the last 25 years. We infer the general equations that can be derived from each conceptualization. Finally, we summarize the shortcomings and contradictions of each model as well as conclusions reached so far by a certain consensus of researchers using different models. In order to provide a framework for understanding service quality models, we discuss the service quality paradigm from the realist and constructivist perspective along with the multidimensional nature of service quality implicit in the reflective versus formative debate. We conclude by recommending the development of more creative models of service quality, proposing three different options for quantitative analysis that minimize the various limitations that characterize the most widely used models.     

Frontier markets’ efficiency: mutual information and detrended fluctuation analyses

This study tests weak form efficiency in frontier markets. Mutual information and detrended fluctuation analyses are performed to assess global correlation and long range dependence in the stock markets of twenty three countries. The results indicate that Slovenia is the only case where there is evidence compatible with weak form efficiency. The relatively less inefficient markets are mainly located in Europe and America, and the relatively more inefficient mainly in the Middle East. This information is useful for investors, but also for the assessed countries’ regulators as they indicate that relevant impediments are preventing the exploitation of potential profitable opportunities.

     

Managerial perceptions of employees’ affective commitment and product innovation

In this paper we examine how managers perceive employees’ affective commitment and how this perception determines their trust as a managerial attitude toward organizational learning capability (OLC). Likewise, we study how managerial trust affects product innovation and OLC. In other words, we carry out a double mediation: firstly, we examine whether managerial trust is a mechanism through which managerial perceptions of employees’ affective commitment influences on OLC, and secondly, we study if OLC mediates between managerial trust and product innovation. By using structural equation modeling (partial least squares) on a sample of 192 Spanish firms we conclude that: (1) if managers perceive employees to be affectively committed, they will be willing to enhance OLC and to trust them; (2) managerial trust favors OLC and product innovation and (3) OLC appears to exert a full mediation between managerial trust and product innovation.     

Merger Control and Economic Growth of LDCs: Some Observations and Recommendations

The aim of this paper is to evaluate merger control as a segment of competition policy in less developed countries (LDCs) and to propose desirable regimes, using economic growth as the evaluation standard. Three regimes of merger control are recommended, depending on the level of institutional and economic development: for LDCs with low levels of both, the absence of merger control is suitable; for LDCs with intermediate levels of both, very restricted merger control is recommended; this should evolve into somewhat restricted merger control for the remaining LDCs. Advocacy is recommended as the main substitute activity of the national competition authorities.

     

Further empirical evidence on block transactions below the MBR: the Spanish market

There is a relatively unknown market for partial control or corporate influence in Spanish listed firms, where the control transaction size is below the legal threshold that triggers a mandatory tender offer, as this kind of deal looks for exercising some degree of control, but not a full control. The goal of this paper is to go further in its empirical analysis by exploring its distinguishing features, using as the criterion to define its transactions obtaining a seat in the board of directors. We find that these deals are mainly located in the segment of the market of large trades where the rules for private negotiations are easier to implement; the size of the block is relatively large and it is negotiated as a whole block. Besides, the most common buyer has no previous stake in the firm. We find no evidence that the buyers pay, in median, for a seat on the board of directors, but the variability of the premiums for those blocks is higher and shows that buyers that had no control position in the target firm pay more for being among largest shareholders (partial control) and less for not being among them (influence).     

The Political Economy of Real Exchange Rate Behavior: Theory and Empirical Evidence for Developed and Developing Countries, 1960–2010

Empirical results of testing the PPP hypothesis have constantly shown that relative prices do not converge to the same level, either in the short or the long run. Therefore, the PPP explanation of the real exchange rate does not provide a reasonable measure of competitiveness at the international level. This article puts forth a different approach based on the works of Ricardo, Marx, Harrod and Shaikh. It argues that the real relative unit labor cost is the main factor explaining the long-run behavior of the real exchange rate. The second section of the article explains the theoretical underpinnings of our approach. The third section analyzes the role of the real interest rate differential in explaining real exchange rate misalignments. In the fourth section, we present a graphical analysis of the interrelation among the real effective exchange rate, the real unit labor cost ratio, the short-run real interest rate differential and the trade balance for 16 OECD countries, Taiwan and three developing countries for the period 1960–2010. The fifth section investigates the long-run relationship between the latter three indexes through co-integrating and error correction models using the ARDL–ECM framework. The last section provides our conclusions.