Reassessing marketing boards as hybrid arrangements: evidence from Canadian experiences

In this article, we reassess the role of marketing boards and similar arrangements that have played an important role in numerous agro‐food sectors of developed countries over almost a century. Referring to transaction cost economics and to more recent contributions on the allocation of decision and property rights, we interpret these arrangements as hybrid modes of governance. We hypothesize that uncertainty is the leading force pushing toward these organizational solutions and we explore forms of uncertainty at stake and their impact in shaping various types of hybrids. We also explore the role of institutional embeddedness in providing marketing boards and the like their legitimacy. Using numerous examples from Canadian marketing boards, we discuss the benefits and point out flaws of these arrangements. We conclude on the need to assess comparatively the role of these solutions with respect to, for example, a system of bilateral contracts.     

Consumer sorting and hedonic valuation of wine attributes: exploiting data from a field experiment

This article uses a novel experimental approach to measure consumer willingness to pay (WTP) for wine attributes. We invited customers of a local supermarket who had selected a bottle of wine to purchase to participate in a valuation experiment. Integrating their original wine choice into the experiment, each participant evaluated six alternative wines, generating a rich set of data on willingness to pay and consumer characteristics. The data from the experiment allow us to compare standard shelf price‐based wine attribute valuation estimates with estimates using WTP data and an increasing amount of information about individual consumers. The full model employs individual fixed effects to estimate WTP parameters without bias from consumer sorting or supply side influences. Our WTP estimates for wine attributes differ markedly from previous attribute value estimates. Consumers in our sample display clear and stable preferences for wine varieties, but less clear preferences for appellations. Our results suggest caution is needed in using market prices to estimate parameters of the consumer valuation function for product attributes.     

Macroeconomic adjustment programmes in the euro area: an overall assessment

Since the start of EMU (Economic and Monetary Union), the euro area, and more broadly the global economy, experienced an unprecedented credit boom. The expansion of credit was particularly strong in Greece, Ireland, Portugal and Cyprus and all of them subsequently needed official financial support. In each of the four programmes, financial assistance has been provided and promised against the commitment of each country to fulfil certain economic policy conditions contained in the macroeconomic adjustment programme. In general, a macroeconomic adjustment is a process driven by policies but also by changes in private spending behaviour (consumption, imports, investment) and improvement in competitiveness that countries are required to undertake after a large shock. In the case of the four countries, the shock emerged as a consequence of an excessive accumulation of imbalances in different parts of the economy: in the public sector in Greece, in the housing and banking sectors in Ireland, external imbalances in Portugal and in the banking sector in Cyprus. The paper looks at the feasibility of the fiscal adjustment comparing the macroeconomic conditions in the four countries and emphasising the role of the fiscal multipliers in the process. It also assesses the fall in the output in a comparative framework, stressing the role played by the different components of demand either in amplifying the effect of the fiscal consolidation or in offsetting it. In addition, it considers formulation of the programmes as well as their implementation with most attention devoted to reforms aiming at improving competitiveness, growth and employment in the framework of a cross-country approach.     

THE ROLE OF INVENTORIES AND SPECULATIVE TRADING IN THE GLOBAL MARKET FOR CRUDE OIL

We develop a structural model of the global market for crude oil that for the first time explicitly allows for shocks to the speculative demand for oil as well as shocks to flow demand and flow supply. The speculative component of the real price of oil is identified with the help of data on oil inventories. Our estimates rule out explanations of the 2003–2008 oil price surge based on unexpectedly diminishing oil supplies and based on speculative trading. Instead, this surge was caused by unexpected increases in world oil consumption driven by the global business cycle. There is evidence, however, that speculative demand shifts played an important role during earlier oil price shock episodes including 1979, 1986 and 1990. Our analysis implies that additional regulation of oil markets would not have prevented the 2003–2008 oil price surge. We also show that, even after accounting for the role of inventories in smoothing oil consumption, our estimate of the short‐run price elasticity of oil demand is much higher than traditional estimates from dynamic models that do not account for for the endogeneity of the price of oil. Copyright © 2013 John Wiley & Sons, Ltd.     

The intellectual ecology of mainstream marketing research: an inquiry into the place of marketing in the family of business disciplines

Many inside mainstream academic marketing judge the discipline’s influence within the family of business disciplines (as well as in practice) to be in decline. Despite great research productivity, methodologies as sophisticated as any in the social sciences, and a large and rich literature, opinion and evidence suggest that academic marketing is the least influential of the mainstream academic business disciplines. Nevertheless, marketing’s decline is not inexorable. The purpose of this paper is to evaluate this perplexing situation by: (1) assembling and evaluating a number of expert opinions from within marketing; (2) exploring relations and patterns of influence among the leading academic journals in accounting, finance, management, and marketing and evaluating the position and influence of each field; (3) attempting to understand marketing’s problems; and (4) exploring avenues to move marketing back to its once prominent position among the business disciplines.     

Common Values and Low Reserve Prices

I show that the benefit of a high reserve price in a common‐values ascending auction is lower than in the observationally equivalent private values setting. Put another way, when bidders have common values, empirical estimation based on a private‐values model will overstate the value of a high reserve price. Via numerical examples, I show this same ranking typically applies to the level of the optimal reserve price as well, and often to the benefit of any reserve price, not just high ones. With common values, the optimal reserve can even be below the seller's valuation, which is impossible with private values.     

The sociology of innovation and new biotechnologies

Understanding the social processes that support innovations in new biotechnologies presents an interesting challenge. Evidence from the Australian bioindustry reveals how the development and integration of new biotechnologies is a dynamic social process. Our findings highlight how new technology acceptance and integration rested on the micro‐politics of sense‐making and relational networking.