LOCATION OF VERTICALLY LINKED OLIGOPOLISTS

This paper examines the geographical equilibrium of location of N vertically linked firms and its relation to the creation of an industrial cluster. In a two-region spatial economy, a monopolist firm supplies an input to N consumer goods firms that compete in quantities. When the transport cost of the input increases, downstream firms prefer to agglomerate where the upstream firm is located, to save in production cost. However, simultaneous increases in the transport cost of the input and of the consumer good or increases in the number of downstream firms lead to a relative dispersion of these firms, to reduce competition and locate closer to the local final consumer. In contrast to Mayer (2000) , when both transport costs increase, the location decision of downstream firms is based more on the geographical point that maximizes accessibility to the local final consumer than on the geographical point that minimizes the production cost.     

Feeling red lucky? The interplay between color and luck in gambling settings

This paper investigates the effect of the color red on gambling behavior, as influenced by feeling lucky and cultural background. Four experiments examine how risk‐taking choices and gambling behaviors are affected. Study 1A and 1B establish the red risk‐aversion effect in gambling decision making and responses to a gambling app advert. Studies 2 and 3 test the moderating effect of feeling lucky and cultural background, respectively. The authors provide empirical evidence to the effect of red color on risk aversion. In general, people make more risk averse choices, gambling less and less often when primed with the color red over other colors. Boundary conditions are identified in feeling lucky and cultural backgrounds, such that when participants feel lucky or are from Asian Chinese backgrounds the effect is reversed and they take more risks when primed with the color red. This study highlights the importance of color in managing the interaction between consumers and gambling contexts.     

Agglomeration in a vertically-related oligopoly

This paper examines the location of three vertically-linked firms. In a spatial economy composed of two regions, a monopolist firm supplies an input to two consumer goods firms that compete in quantities. It is concluded that agglomeration is more likely to occur when the ratio between the transport cost of the intermediate good and the transport cost of the final good is higher. If this proportion is low, the likelihood of an agglomeration decreases with transport costs. If the ratio has an intermediate value, a non-monotonic pattern is obtained that is different from Krugman and Venables (1995).Received: October 2004, Accepted: March 2005, JEL Classification: C68, F12, F15, R12, R13This paper had the support of the Research Unit on Complexity in Economics (UECE). The author wishes to thank Masahisa Fujita, Armando Pires and an anonymous referee for helpful comments. The usual disclaimer applies.     

An Institutional Explanation for Economists’ Theoretical and Methodological Choices

Scientific research in general and economics research in particular is a social act. More specifically, schools of economic thought as well as associations, research groups and conferences are expressions of social organizations within the realm of economics. Historically, studies investigating the methodologies used in economics have focused on the strengths of these social organizations. This study aims to analyze the key roles played by individuals within social organizations in building and reinforcing economics and, in turn, their influence on these individuals. To achieve this goal, we use an institutionalist approach in a broad sense. We show how economics as an academic environment can be presented as an institutional entanglement and how an institutionalist approach can enhance an understanding of why economists adopt a particular theoretical and methodological perspective. It is argued that habits, observations and cognitive abilities should be seriously considered to understand the logic and decision making of economic researchers. We discuss also the importance of forming groups in the process of institutionalizing elements relevant to an economic researcher’s logic and decision making and present an interpretation of mainstream economics in terms of the analytical approach of our study.     

Examining Medical Decision Making from a Marketing Perspective

This paper explores how consideration of the medical context can add newelements to marketing thought. Differences between the medical context andother consumer contexts are reviewed. The effects that the medical contexthas on the way traditional constructs such as involvement, affect andstress, uncertainty and satisfaction affect choice are discussed. Finally,emerging research in medical contexts where future discoveries could enhanceconsumer choice theory are presented.