Technological change and industry structure: A case study of the petroleum industry

This paper is a case study of the impact of an exogenous improvement of a process technology on the structure of the petroleum industry. The paper examines the role of three-dimensional seismology in bringing about the 1990s oil industry consolidation. This proposition is examined in the context of evolutionary economics and in a non-cooperative game theory, concluding with a reference to Steindl's theory of industry dynamics. The significance of this contribution lies chiefly in highlighting the fact that exogenous technological change can, under appropriate conditions, play a significant role in industry dynamics. This reference to the exogenous change in technology is a departure from the traditional consideration of endogenity of industry structure in relation to technological development and, therefore, a novelty. Secondly, the documentation of 3D seismology as a significant process technology of the petroleum industry is significant.     

RESPONSE OF FINANCIAL MARKETS TO ANNOUNCEMENTS OF THE AUSTRALIAN CURRENT ACCOUNT BALANCE

This paper documents the response of exchange rates, interest rates and stock prices to monthly announcements of the Australian current account balance. Survey data on market participants' expectations and forecasts generated from ARIMA time series models are used to identify the unexpected component of the announcements. The study also controls for day-of-the-week effects that have been documented in the Australian equity market The results support the efficient market hypothesis and show a significant depreciation of the Australian dollar in foreign exchange markets and a significant rise in both short- and long-term interest rates to announcements of larger than expected current account deficits. The study was, however, unable to find evidence of a significant stock price response to the current account announcements.     

A taste for temperance: how American beer got to be so bland

ABSTRACT

This article examines the historical origins of bland American beer. The US was not strongly associated with a particular beer type until German immigrants popularised lager beer. Lager, refreshing and mildly intoxicating, met the demands of America's growing working class. Over time, American lager became lighter and blander. This article emphasises America's uncommonly strong temperance movement, which put the industry on the defensive. Brewers pushed their product as ‘the beverage of moderation,’ and consumers sought out light, relatively non-intoxicating beers. The recent ‘craft beer revolution’ is explained as a backlash aided by a changing consumer culture and improved information technology.     

Robert Shogan. Backlash: The Killing of the New Deal

The title of this book, bringing to mind several recent politicalpolemics, might lead one to expect an indictment of recent presidentialadministrations for attempting to dismantle cherished New Dealprograms. Robert Shogan has a different "killing of the NewDeal" in mind, however, namely that of the New Deal's zeitgeistof policy activism and "bold, persistent experimentation." ByAugust 1935, virtually all of the landmark New Deal programshad been enacted, and Franklin D. Roosevelt himself declaredthat     

Consumer response to design variations in pay-what-you-want pricing

Recent literature has identified consumers’ fairness and image concerns as the primary drivers of payments under pay-what-you-want (PWYW) pricing. Consequently, managers have employed a variety of design variations to invoke/alleviate these concerns to attract more customers and increase payment magnitudes. We develop a theoretical approach that combines both prosocial and self-interested motives to examine consumers’ four possible responses to design variations in PWYW exchange: (1) opt-out, (2) free-ride, (3) default to recommendation, or (4) other payment. We confirm model predictions using an empirical approach that jointly estimates the multipartite customer response. We report findings pertaining to four managerially controllable variables namely, ‘payment visibility’, ‘information on payment recipients’, ‘timing of payment’, and ‘explicit price recommendations’ using both secondary data and controlled experiments. We show that design variations have a heterogeneous effect on different types of consumer responses leading to countervailing effects on revenues. We derive several actionable managerial recommendations.

     

Cloud computing capability: its technological root and business impact

Cloud computing can help organizations create business value for long-term viability and sustainability by providing flexibility and versatility. We report a systematic analysis of the central role of cloud computing capability in bridging the information technology (IT) features of cloud computing and its business value. We posit that the IT features of cloud computing lead to measureable increase in business value on both dimensions of performance benefit and collaboration benefit through cloud computing capability. Survey data collected from 174 firms largely support our hypotheses. This study offers fine-grained insights into the mechanisms of how the IT features of cloud computing influence the business value stemming from cloud computing. Firms should focus more on cultivating organizational capabilities to effectively deploy cloud computing in order to harvest the benefits promised by cloud computing.