Strategic information revelation when experts compete to influence

We consider a persuasion game between a decision‐maker and a set of experts. Each expert is identified by two parameters: (i) “quality” or his likelihood of observing the state (i.e., learning what the best decision is) and (ii) “agenda” or the preferred decision that is independent of the state. An informed expert may feign ignorance but cannot misreport. We offer a general characterization of the equilibrium. From the decision‐maker's standpoint, (a) higher quality is not necessarily better, (b) extreme agendas are always preferred, and (c) the optimal panel may involve experts with identical (rather than conflicting) agendas.     

Intellectual Property Rights and the Quality of Transferred Technology in Developing Countries

This paper addresses the effects of a stronger patent system in developing countries on the quality of transferred technology and welfare. We show that a stronger patent system can reduce the quality of licensed technology. The presence of technology licensing may encourage the developing country to adopt a stronger patent system compared with the situation where licensing is not an option.     

Hidden Costs of Offshore Outsourcing: an Analysis of Offshoring Decisions

Offshore outsourcing has grown as a form of industrial organisation to increase profitability of firms. However, offshoring may be less lucrative than envisaged, due to the presence of hidden costs. We study the strategic interaction amongst onshore Cournot firms in the decision to offshore when they receive signals about offshore hidden costs. The analysis helps suggest policy implications for countries which are potential offshoring locations. We find the precision of signals and the range of possible hidden costs to be crucial in determining offshoring destinations. Updating of information about hidden costs leads to different equilibria including herding in offshoring.     

Applying the scenarios method to capture uncertainties of retail development in emerging markets

Retail development in emerging markets has been the result of key driving forces operating in a variety of ways leading to unpredictable and complex patterns of retail change. Existing theories of retail change remain inadequate for capturing the complexities inherent in emerging markets. In order to capture the impact of the complex interplay of driving forces on retail change in emerging markets, the authors adopted the scenario method which accepts structural uncertainty and allows for multiple interpretations of multiple futures for the phenomenon under study. An example case study is presented, where four possible visions for retail development in emerging markets in Asia are identified. The four scenarios are firstly, a scenario where Traditional Retailers dominate through mom and pop stores, a second one where Regional Retailers dominate, a third one where Discounted Retailers dominate and a fourth where Mixed Retailers gain predominance. The scenarios highlight that the politics of retailing give rise to new conventions of competition in emerging markets, which sustain the coexistence of a variety of retail formats in these markets. The scenarios approach demonstrates that the nature of consumer behaviour rooted in traditions and customs alongside rising aspirations sustains a dual model of retailing in emerging markets. The paper concludes with reflections for retail development theory and implications for practitioners and policy-makers.     

The effect of spicy gustatory sensations on variety‐seeking

Can spicy gustatory sensations increase variety‐seeking in subsequent unrelated choices—and if so, how? The present research explores these questions. Based on the metaphor “variety is the spice of life,” and drawing on research on metaphors and embodied cognition, the authors propose that spicy gustatory sensations may activate a desire to be interesting that leads to greater variety in subsequent unrelated choices. Specifically, the first study demonstrates that tasting spicy vs. mild potato chips results in greater variety‐seeking in candy bars—but only when there is a time delay between the gustatory sensation and the variety‐seeking choice task, suggesting an underlying motivational process. Further, the effect of spicy gustatory sensations on variety‐seeking strengthens as the time delay increases, consistent with a motivational account. The second study provides evidence for a metaphor‐based explanation of the effect by demonstrating that while there is no difference in variety‐seeking among consumers who have tasted a spicy candy and those merely primed with the metaphor “variety is the spice of life,” variety‐seeking is lower among consumers who have tasted a mild candy. This study also rules out taste‐related factors as an alternative explanation.     

Understanding Promotional Service Interactions through Social Exchange Theory of Affect

Dyadic commercial relations during service interactions are not possible without exchange of emotions between the interactional partners. The study theorizes social exchange theory of affect and explores triggers of emotions from customers and service agents that enable rapport during promotion of products. The study conceptualizes that service agents deliver overall authentic service delivery, which is a composite of authentic emotions and affective service delivery. These delivered emotions are reciprocated by the customers who are high on agreeableness. The study also validates the link between rapport, customer satisfaction, and future buying intentions of the customers. Data were collected through between subjects experimental design on 120 participants. The results were analyzed and structural model was developed using partial least-square structural equation modeling (PLS-SEM) technique. Results indicate that customer employee rapport is best predicted when overall authentic service delivery and customer agreeableness mutually interacts. The study is limited to outbound promotional services and its validity for other kinds of services and inbound calls awaits exploration.     

Feasible Estimation of Nonparametric Generalized Random Effect Model: An Application

This paper considers some feasible estimator for nonparametric random effect panel data model when there are more than one cross section component. A brief discussion about the consistency of the estimator is also included. The paper also discusses an interesting application related to capita-labor ratio and its effect on factor share in a neo-classical set up.

     

打击通胀，中国远未能取得胜利

【美国彭博新闻社6月12日】本周，中国主要股市指数发生一日暴跌8．1％的情况，显示投资者已经把目光从食品价格（这是稳定的）转向表面之下潜伏的其他通胀来源。     

Aid,Policies, and Growth in Developing Countries: A New Look at the Empirics

The relationship between foreign aid and economic growth has been the subject of much controversy. A recent theme suggesting that aid promotes growth, but only in a good policy environment has ratcheted up that debate. In this paper, we assess the importance of policy and aid in generating growth when the aid, policy, and growth relationship is nonlinear. This allows us to examine the varying effects of aid and policy in different data segments, which we do without imposing any particular structure on the underlying relationship. We find that policy is an important determinant of growth. We also find partial corroboration of the view that aid is growth enhancing in a good policy environment, and some evidence of diminishing returns to aid. These findings suggest that nonlinearities if not appropriately addressed fail to capture the detailed underlying dynamics and thereby mask some key features of the aid-policy-growth relationship.