Third‐person perception and purchase behavior in response to various selling methods

Two studies investigated whether various tactics of personal selling that generate different levels of resistance also produce different degrees of third‐person perceptions. Furthermore, the studies compared third‐person perceptions to the actual influence on behavior. Study 1 showed that more direct and blatant selling methods produce more TPP. Study 2 showed that people tend to underestimate the influence of the more direct method, especially with regard to themselves. The study concludes by identifying the ideal selling method as one in which the customers are asked about their willingness to listen to the sales campaign before they are told about it. This method increases sales and creates satisfied customers. © 2009 Wiley Periodicals, Inc.     

Patent Quality and a Two‐Tiered Patent System

In this paper, we study the determinants of patent quality and volume of patent applications when inventors care about perceived patent quality. We analyze the effects of various policy reforms, specifically, a proposal to establish a two‐tiered patent system. In the two‐tiered system, applicants can choose between a regular patent and a more costly, possibly more thoroughly examined, ‘gold‐plate’ patent. Introducing a second patent‐tier can reduce patent applications, reduce the incidence of bad patents, and sometimes increase social welfare. The gold‐plate tier attracts inventors with high ex‐ante probability of validity, but not necessarily applicants with innovations of high economic value.     

Defensive Publications in an R&D Race

This paper considers a multistage dynamic R&D race in which the competitors strategically publish research findings. Publications change the prior art, thus affecting patentability. Firms publish when they are behind in the race and their rival is close to winning it. Publication sets back both competitors and gives the follower a chance to catch up. Publications prolong the race. Firms are more likely to publish the more patient they are, and the higher their probability of success. Asymmetry between the firms generates additional incentives to publish such as protecting profits from a previous patent and increasing a strong firm's probability of winning. When firms face a joint decision on publications and the intensity of research, publications substitute investment.     

Healthier for whom? Technological service improvement in the healthcare industry

This study tackles the dilemma of a technology-based service improvement wherein an organization performs a technology change to improve its service process, while its customers do not necessarily perceive the new service as an improvement. The empirical research follows a healthcare provider that changed its primary care provider appointment scheduling using a new call centre technology. The methodology involves three processes reflecting the entire change: personal interviews, focus groups, and surveys. To facilitate adoption of a technology-based service, it is recommended that there be a focus on customers’ experience with similar service industries’ image, and organizational policies on contracting service representatives.     

The Effect of Investment,LFA and Agri-environmental Subsidies on the Components of Total Factor Productivity: The Case of Slovenian Farms

The effect of subsidies on the performance of farms has received a great deal of attention in the literature, although results are inconclusive. Furthermore, much of the related literature examines the effect of subsidies only on technical efficiency (TE). We examine the effect of different types of subsidies on the different components of total factor productivity (TFP) in Slovenian agriculture over the period 2006–2013. We first estimate a Random Parameter Stochastic production frontier model. Then, based on the estimates of this model, we calculate and decompose the TFP index into TE, scale efficiency and technological change. Third, we apply combined difference-in-difference and a matching estimator to examine the effect of investment, less favoured area (LFA) and agri-environmental (AE) subsidies on the different components of TFP. In our case, these subsidies are found to have no significant effect on either TFP or on its components.     

Recruitment,Training, and Career Concerns

We examine training and recruitment policies in a two‐period model that nests two forms of production, “routine” work where ability and effort are substitutes and “creative” work where they are complements. Alternative ways of improving average ability have opposite implications for agents' career concerns. Although teaching to the top (training complementary to ability) or identifying star performers increases agents' career concerns, teaching to the bottom has the opposite effect. The paper also makes more general comments relating to models of reputation.     

Urban Citizenship and Right to the City: The Fragmentation of Claims

In this symposium, we explore how urban citizenship is about expressing, if not producing, difference, and how fragmentation of claims affects urban citizenship and right to the city movements with their universal, all‐inclusive ideals. Investigating social movements, political participation and conflicting diversities in public space in Tel Aviv and Berlin, we see a trend towards a diversification of interests, a weakening of movements, and even a competition over rights and resources rather than a development of mutual support and solidarities among various groups on the pathway to a livable city. This tension, we argue, deserves attention. Radical urban scholarship and politics need to better understand the historical and place‐specific contexts that structure the formation of citizenship claims and the courses that citizenship struggles take. Celebrations of urban citizenship as a more contextualized, community oriented, and bottom‐up framework (in comparison to national citizenship) should therefore be complemented by a careful investigation of their fragmented and fragmenting practices.     

Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic,Hungary, Romania and Turkey

This research investigates the perceptions of stakeholders involved in financial reporting in four emerging economies (the Czech Republic, Hungary, Romania, and Turkey) regarding the possible implementation of IFRS for SMEs, in terms of costs, benefits, and strategy of adoption. In‐depth, semi‐structured interviews were conducted with representatives of main stakeholders (preparers, auditors, regulators, professional bodies, and users). We find more support for IFRS for SMEs implementation in these four countries than suggested by the results of the European Commission's 2010 consultation for the European Union. Interviews reveal differences between stakeholder groups and between countries regarding the preferred implementation approach (mandatory adoption, voluntary adoption or convergence of national regulations with IFRS for SMEs). Interviews indicate the most support for the convergence approach. However, users oppose convergence and prefer the adoption of IFRS for SMEs. The convergence approach moves regulators' attention from users' needs to preparers' preferences and preparedness. This finding is relevant in the decision‐making process of national regulators, who should balance the needs of various stakeholders, but also the country's political and economic objectives.     

Information Gathering Externalities for a Multi‐Attribute Good

Most goods and services vary in numerous dimensions. Customers choose to acquire information to assess some characteristics and not others. Their choices affect firms' incentives to invest in quality and so lead to indirect externalities in consumers' choices. We characterize a model in which a monopolist invests in the quality of a product with two characteristics, and consumers are heterogeneous ex‐ante. Consumers do not internalize their influence on the firm's investment incentives when choosing which information to acquire. Cheaper information affects consumers' information gathering and thereby firm investment. This can paradoxically reduce consumer surplus, profits, and welfare.     

Forum Selection in International Business Contracts: Home Bias Portfolio Puzzle and Managerial Moral Hazard

We provide an economic analysis of forum selection in international business contracts. International business contracts or multi-state transactions within federally structured countries might be subject to more than one sovereign adjudication system. In case of conflict between the transacting parties, the appropriate tribunal must be identified. We examine the question of business firms' optimal choice of the forums to adjudicate future business disputes. We extend the investment model approach to litigation by applying a portfolio theory type analysis. We show that firms that prefer higher expected income and lower income volatility are better off diversifying the forums under which they litigate business disputes. This stands in contrast to real-world business practice that consistently shows a clear preference to selecting the home court and legal system to settle international business disputes. In a fraction of the cases, both parties gain by selecting a certain forum, because of specialization for example, and it becomes optimal to ignore diversification. In most cases, however, the relevant factors that affect forum selection are zero sum and priced ex ante, court bias, for example. Once priced, there is no incentive to disregard diversification. We hypothesize that, in addition to specialization, factors such as managerial moral hazard explain the real-world behavior of firms: managers are less likely to be blamed, ex post, for choosing the home court. We suggest that, as international barriers decline and international trade grows, firms will diversify the forums in which they adjudicate international business disputes.