A matrix-based industrial location model

Experience with earlier interview-type location studies is employed as a basis for an ‘improved’ matrix model for the external location factors affecting industrial undertakings. The model enables the relative advantage of potential locations for industry to be determined, and the most appropriate branches of industry to be assigned to each region.     

Pricing by hedging and no-arbitrage beyond semimartingales

We show that pricing a big class of relevant options by hedging and no-arbitrage can be extended beyond semimartingale models. To this end we construct a subclass of self-financing portfolios that contains hedges for these options, but does not contain arbitrage opportunities, even if the stock price process is a non-semimartingale of some special type. Moreover, we show that the option prices depend essentially only on a path property of the stock price process, viz. on the quadratic variation. We end the paper by giving no-arbitrage results even with stopping times for our model class.      

Features of the Z-scoring method in graphical two-dimensional web surveys: the case of ZEF

Research in the human and behavioral sciences has long been burdened by a methodological distinction between two categories of research: that which measures and produces facts and that which understands and interprets phenomena. However all interpretation of numbers requires that results be viewed in relative terms and there are no other means for this than comparison. The Z-scoring method, that is to say standardization, in web survey ZEF, emphasizes relative traits of survey answering. Questions in ZEF are illustrated in graphical two-dimensional chart where respondents are able to compare their answers at the moment of answering process. This trait of answering emphasizes the relationship of questions more than an absolute values on the scales of two dimensions. The Z-scoring method that is used in ZEF for handle results is based for same assumption: The respondents are compared questions and are formulated their answers through comparison. The significance of differences between groups cannot be measured directly: in some content areas, even small differences may be important, while in others changes of even several per cent are not significant. Standardization makes visible how different respondents and groups value things, that is, construct an order for them, using the dimensions given.     

Contradictions in food consumption

This study asked consumers to identify the possible contradictions in their food consumption. The article takes the so‐called ‘antinomies of taste’– health vs. indulgence, convenience vs. care, extravagance vs. economy, novelty vs. tradition and together vs. alone – by Warde and Mäkelä as a starting point. The empirical part of the research analyses between which opposing poles the contradictions emerge when the consumers themselves are asked. Findings from a survey (745 respondents) indicate that consumers prefer to engage in food‐related activities that would be more aesthetic, healthful, tasty, convenient, caring and economic, but state significant barriers for not being able to fulfil these desires. Finally, the article draws theoretical conclusions about the connections between the prevailing food consumption‐related contradictions and contemporary consumer society.     

Improving firm positioning through enhanced offerings and buyer-seller relationships

We analyze the strategic repositioning of firms through changes in their market offerings and buyer-seller relationships. Based on literature from strategy, marketing, economics, and information systems, we formulate a two-by-two matrix to examine alternatives for positioning. We evaluate the framework with four case studies of companies that have recently moved toward more complete product/service offerings and stronger relational linkages with customers. These moves followed two different paths. The product/service path initially focused on the development of new and related products, product bundles, and the addition of product-related services. The relational path first focused on establishing closer relationships with customers including closer operational linkages, enhanced information sharing, more fully articulated legal and contractual obligations, and enhanced cooperation. In all the cases, the strategic repositioning was influenced by customer needs and enabled by information technology and the acquisition of new competencies through networking.     

Over-Indebtedness in the Finnish Consumer Society

The incurring of debts continues to be a major problem in European economies despite the legislative and other preventive policies introduced over the past 10 years. This article discusses the problem of over-indebtedness in the Finnish consumer society. The article focuses on identifying the environmental and household factors promoting indebtedness and reviews the measurements of over-indebtedness. At the end of the article, a few policy instruments to tackle, or even prevent, over-indebtedness are provided. As debt problems are diverse and complex, the focus is to address the debt problem itself, identify its causes and search for tools for solving it. In addition, constructive talk about the indications of the problem and preventive mechanisms is also of essence.     

Forecasting the consumption of alcoholic beverages in Finland: A box-Jenkins approach

In this report the results of identifying, estimating and diagnostically checking short-term rational distributed lag (transfer function) models for forecasting the consumption of alcoholic beverages other than beer in Finland are reviewed and compared with some other Scandinavian studies. The output of models is the logarithm of the monthly consumption of alcoholic beverages while the only specified input is the logarithm of the price index of alcoholic beverages. Other explanatory variables are included in the ARIMA noise. The importance of the price variable is demonstrated by comparing ex post predictions obtained using different methods.     

Foreword

Journal of Consumer Policy -     

Commitment problems justify subsidies for medical insurance

Consumers who believe that government will provide them with some public medical care, even if they did not purchase medical insurance, may choose to purchase no such insurance. The amount of medical care consumed will then be less than the first-best optimum. Under specified conditions government can then increase the welfare of consumers by subsidizing insurance, or by providing public health care at a more generous level than the minimum it would otherwise give.