The Effect of Multiknowledge Individuals on Performance in Cross‐Functional New Product Development Teams*

This study examines the effect of multiknowledge individuals (especially those possessing both marketing and technological knowledge) on performance in cross‐functional new product development teams. A survey of 62 cross‐functional teams shows that the proportion of multiknowledge individuals has an indirect positive effect through information sharing on product innovativeness and a direct positive effect on time efficiency of new product development teams.     

Regulatory Uncertainty and Financial Contagion: Evidence from the Hybrid Capital Securities Market

This paper examines the negative market impact that resulted from the insurance regulators’ potential reclassification of 140 hybrid capital securities in spring and summer 2006. It illustrates how financial contagion can spring from a regulatory policy change that lacks transparency. We investigate the impact of the uncertainty surrounding the regulators’ true classification criteria by measuring the effect of the reclassification announcements on hybrid new issue volume, cumulative average abnormal returns, bid‐ask spreads, and yield spreads. The financial contagion adversely affected the entire hybrid capital securities market for six months. The effect was most pronounced among those hybrids that were eventually reclassified as common equity equivalents. It was greater for Yankee Tier 1 hybrids, which had been more popular with insurance firm investors prior to the reclassifications, than among non‐Tier 1 hybrids.     

3D simulation technology as an effective instructional tool for enhancing spatial visualization skills in apparel design

The purpose of this study is to explore the effectiveness of 3D simulation technology for enhancing spatial visualization skills in apparel design education and further to suggest an innovative teaching approach using the technology. Apparel design majors in an introductory patternmaking course, at a large Midwestern University in the United States, participated in this study. Three different teaching methods (lecture, 3D simulation instruments, and paper patternmaking) were employed in consecutive instructional phases, within a single day. A short questionnaire devised to assess students’ visualization abilities and overall evaluation on the three different teaching methods was administered to the students after each of the three phases. Overall, students’ abilities to visualize 2D patterns onto a human body were improved by all three teaching methods. The 3D simulation instruments anchored positive effects of training on spatial visualization abilities between lecture and paper patternmaking practices. The results affirm that 3D simulation technology has positive potential as an efficient instructional tool for improving students’ visualization skills in apparel design.     

Understanding the Benefit Sought by Rural Tourists and Accommodation Preferences: A South Korea Case

Rural tourism has been widely acknowledged for its effectiveness in contributing to rural areas’ development. With strong government support, rural tourism has developed in many countries during the last several decades. This study aims to improve the understanding regarding tourism in Korean rural areas using a segmentation approach. The responses of 442 tourists in 23 rural villages were analyzed. Four segments of tourists were identified based on the different benefits they sought for their vacation in rural establishments. The estimation of a multinomial logit model determined the socio‐demographic characteristics and the preferred accommodations of a rural tourist. Discussions and implications of the detailed findings are provided in the last section. Copyright © 2012 John Wiley & Sons, Ltd.     

Consumer rationality and credit card pricing: An explanation based on the option value of credit lines

An option is embedded in credit cards. Since credit cards offer open credit lines, cardholders can borrow at the same terms when they become riskier. This option value raises the zero‐profit card rate. Furthermore, adverse selection occurs if cardholders are better informed about the probability of becoming riskier in the future and borrow more when they become riskier. The adverse selection can limit rate competition and keep the card rate above the zero‐profit card rate. An up‐front fee is not a good alternative because it is also vulnerable to adverse selection. A low introductory card rate is an effective way to avoid the adverse selection problem when asymmetric information is mainly about the change in the borrower's risk profile in the future, as opposed to the riskiness in the present period. Copyright © 2004 John Wiley & Sons, Ltd.     

EAST ASIAN REGIONAL TRADE AGREEMENTS: DO THEY PROMOTE GLOBAL FREE TRADE?

Abstract.  We quantitatively evaluate the effects different paths have on East Asian Regional Trade Agreements (RTA), which include expansionary, duplicate and overlapping RTAs. By applying a computable general equilibrium model analysis, we find that the static effect of existing, proposed and negotiating East Asian RTAs on world and members' welfare is sufficiently positive. It will lead to non-discriminatory global free trade, by triggering the domino effect of regionalism if the RTAs take an expansionary path by cooperating with each other, in contrast to competing to achieve the first mover advantage, or hub self-interest.     

Rational Beliefs or Distorted Beliefs: The Equity Premium Puzzle and Micro Survey Data

This paper examines whether the expected equity premium constructed from survey forecasts is consistent with the implications of the rational belief approach or the distorted belief approach to explaining the equity premium puzzle. To address this question, a panel data model with a fixed individual effect and a business cycle effect is analyzed. The results appear more favorable to the distorted belief approach. The average expected equity premium is lower than the average realized equity premium during the sample period. The average bias across economists is significant and varies over the business cycle, which is consistent with distorted beliefs that are excessively pessimist.c over expansions and excessively optimistic over contractions.     

Types of firms generating network externalities and MNCs' co‐location decisions

This study identifies and examines sources of network externalities that influence MNCs to agglomerate their foreign operations in specific regions. Using data for Korean firms that invested in China, this study found that network externalities were sensitive to the types of firms constituting a regional network. It also found stronger network externalities within firms than across firms, from firms of the same nationality than from those of different nationalities, and from firms in the same industry than from those of different industries. As we defined the types of firms more precisely, distinctive curvilinear relationships between network externalities and the likelihood of co‐location emerged. Copyright © 2005 John Wiley & Sons, Ltd.