Robust Imitation Strategies

Performance is the lifeblood of a firm's management. Performance itself depends on the adaptation of strategy based on learning and the environment. An important way that firms adapt their strategy is through imitation or mimetic isomorphism. Imitation implies a referent for such adaptations. This article seeks to determine who or what should serve as that referent. Accordingly, this research (1) develops a broad and rich model of industry dynamics, bringing together literature from industrial economics, strategic groups, learning, and resource‐based theories; (2) examines the robustness of imitations strategies; and (3) develops a framework of the managerial implications of imitative behavior in varying industry conditions. Copyright © 2013 John Wiley & Sons, Ltd.     

Impact of irrigation water quality on human health: A case study in India

Untreated or partially treated wastewater, which is a negative externality of urban water use, is widely used for irrigation in water scarce regions in several countries including India. While the nutrients contained in the wastewater is considered as beneficial to agriculture, the contaminants present in it pose environmental and health risks. This paper examines the morbidity status, its determinants as well as the cost of illness for households living in the areas irrigated with wastewater in comparison with those using normal quality water. Primary data collected from six villages irrigated with wastewater along Musi River which is fed with wastewater and one control village where normal quality water is used for irrigation has been used for the analysis.It is seen that higher rates of morbidity exist in the wastewater irrigated villages when compared to the control village. Specifically, adult and female morbidity rates are significantly higher than child and male morbidity rates. From the logit analysis it is seen that exposure to wastewater and engagement in activities based on it places the households in higher risk groups to report morbidity. Small and marginal farmers incur higher economic cost of illness. However, it has been difficult to ascertain the cause and effect relationship as most of the households have reported more common illnesses like fever, head ache, skin itching, stomach ailments, etc. The study points out the need for a comprehensive risk assessment and adoption of risk management measures including setting standards for treatment and discharge of wastewater and regulations on the type of uses etc. to prevent unplanned use of untreated or partially treated wastewater while taking into account local conditions.     

Remittances and financial development: empirical evidence from heterogeneous panel of countries

Remittances are the second largest source of external finance after foreign direct investment in the developing economies. In this study, we analyse the role of incoming remittances on financial development for 57 highest remittance recipient economies. A long run equilibrium relationship is established between remittances and three alternative indicators of financial development. Estimates from the dynamic system-generalized method of moments reflect lower elasticity values for developing countries compared to the developed ones. Our findings are robust across countries, and highlight the necessity for strengthening institutional set-ups to increase the inflow of remittances, which will enhance financial development across countries. The role of foreign direct investment is found to be significant in most cases.     

IMMUNITY

Legal provisions that protect elected politicians from prosecution have been common throughout history and still exist in most democracies. We provide the first systematic measurement of immunity and study, theoretically and empirically, its relation to corruption. Theory predicts that immunity is a double-edged sword. To test whether immunity is a vice or a virtue, we quantify immunity enjoyed by heads of government, ministers, and legislators in 90 countries. Controlling for standard determinants of corruption, we find that stronger immunity is associated with greater corruption. Instrumental variable estimations using immunity at the first democratic constitution suggest the effect could be causal.     

Spillover effects of ingredient branded strategies on brand choice: A field study

Ingredient branding, or the use of two or more brand names on a single product, is widely seen as providing significant benefits in terms of increased product differentiation and greater market share. The association between two brand names can both enhance and dilute the brand equity of the host brand name and the ingredient brand name. This research examines the behavioral spillover effects associated with cobranded strategies across segments of consumers that vary in their prior brand commitment or loyalty. Different from previous research, this paper uses A.C. Nielsen scanner panel data to investigate the behavioral spillover effects of ingredient branded products on choice of the host and ingredient brands in a field setting. The results suggest that there is a significant behavioral spillover impact of trial of the cobranded product on the purchase probability of both the host and ingredient brands. This effect is greater among prior non-loyal users and prior non-users of the host and ingredient brands and when there is a higher degree of perceived fit between the host and ingredient brands.     

Optimal response to a next generation new product introduction: to imitate or to leapfrog?

In this paper, we study the choice of technology levels and timing of the introduction of new technologies in a market in which customer sophistication increases over time. Faced with the introduction of a new generation product, a firm can either imitate or leapfrog it. If the new product is introduced optimally, we show that the optimal response is to imitate it. This is because the technology leader's best strategy is to set a technology level that makes imitation the best response. We also derive decision rules for the timing of introduction of new technologies. Copyright © 2005 John Wiley & Sons, Ltd.     

Analytical Valuation of American Options on Jump-Diffusion Processes

We derive analytic formulas for the value of American options when the underlying asset follows a jump-diffusion process and pays continuous dividends. They early exercise premium has a form very different form from that for diffusion processes, and this can be attributed to the discontinuous nature of the price paths. Analytical formulas are derived for several distributions of the jump amplitude.     

The determinants of recovery from the Black Saturday bushfire: demographic factors,behavioural characteristics and financial literacy

We investigate the contribution of demographic factors, behavioural characteristics and financial literacy to recovery from the financial losses inflicted by the Black Saturday bushfire. Behavioural characteristics (such as overconfidence, self-serving and loss aversion biases) in conjunction with bushfire survivors’ knowledge of financial indicators are used to determine recovery time. Data are collected through in-depth interviews with bushfire survivors, academics and experts in natural disasters. The results show that demographic, behavioural and financial literacy factors have the potential to enhance the recovery process.     

A Monopolist Would Still Charge More for Windows: A Comment on Werden's Reply

Werden's reply to our comment does nothing to cast doubt on our fundamental conclusion: Microsoft's pricing of Windows is inconsistent with thegovernment's claim that Windows is a monopoly, protected by high entry barriers.