Consumer neuroscience the effect of retail brands on the perception of product packaging

Whereas classical marketing research is restricted to purely analyzing reported and/or behavioral data, the new research area of consumer neuroscience might be able to capture unconscious and emotional processes as well. The present study investigates the neural correlates associated with different retail brand frames. The authors assume that the integration of emotions and memories associated with the image and reputation of a retail brand can influence consumers’ perception of a product packaging.     

IT Governance and Types of IT Decision Makers in German Hospitals

Growing expenses for health care services in hospitals stress the potential of a well applied IT governance for cost reduction, productivity gains and a possible source for competitive advantages. The underlying explorative study analyzes the current status of IT governance through a survey among 206 IT decision makers in German hospitals. The quantitative analyses show that the most important requirements of IT managers for IT are the optimization and standardization of processes, that IT investments shift from administrative to medical IT applications, and that private hospitals display relatively higher IT budgets than do non-profit or public hospitals based on financial turnover. Further, two types of future IT decision makers are empirically identified. The types differ regarding their future role as initiators for process optimization and regarding the degree of involvement in strategic decision making.     

Are All the Potential Entrepreneurs So Good?

While the vast economic literature on entry has been recently accompanied by a growing literature on the post-entry performance of newborn firms, still few studies propose a connection between the two phenomena.Exploiting the opportunity of using data concerning potential entrepreneurs, this study attempts to relate ex-ante economic, individual and environmental features to both the decision to start a new firm and – in the case of actual foundation – to the post-entry performance exhibited by the newborn firm.Empirical results based on 365 Italian potential founders show that entrepreneurial projects based on a rich information set, a first-best choice and on self commitment are more likely to develop into actual startups and better post-entry performances.     

Firms size and R&D spillovers: Evidence from Italy

The recent emergence in the industrial organization literature of a wave of studies identifying small firms as more innovative than their larger counterparts poses something of a paradox? Where do small firms get their knowledge generating inputs? The purpose of this paper is to link innovative inputs to innovative outputs. This enables the identification of the extent to which spillovers exist from major sources generating new economic knowledge, such as the research and development (R&;D) laboratories of private and public firms, as well as universities, to the innovative activity of large and small enterprises. Based on twenty Italian regions over a period of nine years, the emprical evidence suggests that, while firm R&;D expenditures contribute to the generation of innovative output for all firms, as well as for large and small firms, the spillovers from university research are apparently more important for small-firm innovation than for large-firm innovation.     

Financial contagion in the laboratory: The cross-market rebalancing channel

We present the results of the first experimental study of financial markets contagion. We develop a model of financial contagion amenable to be tested in the laboratory. In the model, contagion happens because of cross-market rebalancing, a channel for transmission of shocks across markets first studied by Kodres and Pritsker (2002). Theory predicts that, because of portfolio rebalancing, a negative shock in one market transmits itself to the others, as investors adjust their portfolio allocations. The theory is supported by the experimental results. The price observed in the laboratory is close to that predicted by theory, and strong contagion effects are observed. The results are robust across different market structures. Moreover, as theory predicts, lower asymmetric information in a (“developed”) financial market increases the contagion effects in (“emerging”) markets.     

The place of technology in the Capability Approach

Increasing scholarly attention has focussed on how to integrate technology within the Capability Approach (CA), yet without a consistent solution. Some describe technology as a special kind of capability input, but others consider the concept of technology to be fundamentally different from that of an ordinary input. We aim to contribute to the theoretical development of the CA by offering a consistent justification for the explicit inclusion of technology in this framework. We propose that technical objects have a ‘generative’ and a ‘transformative’ dimension through which they enable capabilities directly and affect other inputs in the attainment of valued capabilities. The objects acquire the transformative dimension from the broader technological context, which we propose as a new class of conversion factors. Using the example of mobile phones and their role in healthcare access, we demonstrate that our proposal helps to frame the analysis of the development impact of technology.     

The Causal Effects of the Minimum Wage Introduction in Germany – An Overview

In 2015, Germany introduced a statutory hourly minimum wage that was not only universally binding but also set at a relatively high level. We discuss the short‐run effects of this new minimum wage on a wide set of socioeconomic outcomes, such as employment and working hours, earnings and wage inequality, dependent and self‐employment, as well as reservation wages and satisfaction. We also discuss difficulties in the implementation of the minimum wage and the measurement of its effects related to non‐compliance and suitability of data sources. Two years after the minimum wage introduction, the following conclusions can be drawn: while hourly wages increased for low‐wage earners, some small negative employment effects are also identifiable. The effects on aspired goals, such as poverty and inequality reduction, have not materialised in the short run. Instead, a tendency to reduce working hours is found, which alleviates the desired positive impact on monthly income. Additionally, the level of non‐compliance was substantial in the short run, thus drawing attention to problems when implementing such a wide reaching policy.     

Large newsvendor games

We consider a game, called newsvendor game, where several retailers, who face a random demand, can pool their resources and build a centralized inventory that stocks a single item on their behalf. Profits have to be allocated in a way that is advantageous to all the retailers. A game in characteristic form is obtained by assigning to each coalition its optimal expected profit. We consider newsvendor games with possibly an infinite number of newsvendors. We prove in great generality results about balancedness of the game, and we show that in a game with a continuum of players, under a nonatomic condition on the demand, the core is a singleton. For a particular class of demands we show how the core shrinks to a singleton when the number of players increases.     

Product variety and price strategy in the ski manufacturing industry

The present paper aims at examining the role of variety in the ski manufacturing industry and its relevance in firms’ price setting strategies. In particular, it intends to investigate and to empirically test three hypotheses concerning the relations between: product quality and prices; variety in technical characteristics and prices; variety in service characteristics and prices. Our empirical investigation finds that prices are positively affected by product quality and positively affected by variety in service characteristics. This means that a high degree of product variety allows firms to charge a premium price on consumers, who are able to find the product that best meets their needs and are therefore willing to pay a higher price. By contrast, variety in technical characteristics negatively impacts prices. In a context where a dominant design has emerged and new varieties are not radically different from each other, the gains in economies of scale and scope outweigh the costs of the increased flexibility in the equipment required to produce variety.