Trust and the don't‐want‐to‐complain bias in peer‐to‐peer platform markets

This paper addresses peer‐to‐peer (P2P) digital platform markets, often associated with the “sharing economy” or the “collaborative economy”. Such digital platforms, facilitating new purchasing channels for consumers by matching P2P supply and demand, can be considered new market places challenging the conventional markets. How are P2P platform markets evaluated by the consumers? Based on a comprehensive survey‐data material, five different P2P service markets are considered by peer buyers and the results compared to consumers’ evaluations from similar conventional service markets according to trust, comparability and consumers’ satisfaction with the transactions. Comparability seems to be one advantage for the platform markets, while trust could become a problem. Conditions for trust in P2P platform markets is particularly interesting to study because contrary to conventional markets P2P transactions cannot rely on governmental laws, regulations and security net. This trust problem has been solved by a trust‐generating rate and review system. Our data material, however, distinguishes a mechanism that we have coined as the don't‐want‐to‐complain bias. More precisely, people do not like to complain, hence buyers of P2P services often hesitate to give negative ratings when they are discontent with a service or a supplier. Therefore, positive ratings become overestimated. If consumers recognize this bias, ratings and reviews will lose credibility and no longer be considered trustworthy. Eventually, this may threaten the well‐functioning of P2P markets.     

MULTIDIMENSIONAL DYNAMIC RISK MEASURE VIA CONDITIONAL g‐EXPECTATION

This paper deals with multidimensional dynamic risk measures induced by conditional g‐expectations. A notion of multidimensional g‐expectation is proposed to provide a multidimensional version of nonlinear expectations. By a technical result on explicit expressions for the comparison theorem, uniqueness theorem, and viability on a rectangle of solutions to multidimensional backward stochastic differential equations, some necessary and sufficient conditions are given for the constancy, monotonicity, positivity, and translatability properties of multidimensional conditional g‐expectations and multidimensional dynamic risk measures; we prove that a multidimensional dynamic g‐risk measure is nonincreasingly convex if and only if the generator g satisfies a quasi‐monotone increasingly convex condition. A general dual representation is given for the multidimensional dynamic convex g‐risk measure in which the penalty term is expressed more precisely. It is shown that model uncertainty leads to the convexity of risk measures. As to applications, we show how this multidimensional approach can be applied to measure the insolvency risk of a firm with interacting subsidiaries; optimal risk sharing for ‐tolerant g‐risk measures, and risk contribution for coherent g‐risk measures are investigated. Insurance g‐risk measure and other ways to induce g‐risk measures are also studied at the end of the paper.     

BUY‐LOW AND SELL‐HIGH INVESTMENT STRATEGIES

Buy‐low and sell‐high investment strategies are a recurrent theme in the considerations of many investors. In this paper, we consider an investor who aims at maximizing the expected discounted cash‐flow that can be generated by sequentially buying and selling one share of a given asset at fixed transaction costs. We model the underlying asset price by means of a general one‐dimensional Itô diffusion X , we solve the resulting stochastic control problem in a closed analytic form, and we completely characterize the optimal strategy. In particular, we show that, if 0 is a natural boundary point of X , e.g., if X is a geometric Brownian motion, then it is never optimal to sequentially buy and sell. On the other hand, we prove that, if 0 is an entrance point of X , e.g., if X is a mean‐reverting constant elasticity of variance (CEV) process, then it may be optimal to sequentially buy and sell, depending on the problem data.     

Light‐Touch Integration of Chinese Cross‐Border M&A: The Influences of Culture and Absorptive Capacity

As a major entry mode of global strategy of Chinese MNCs, Chinese cross‐border merger and acquisition (M&A) is still a less understood phenomenon, in particular the post acquisition phase. This study contributes to this rising, important and interesting phenomenon utilizing an explorative research method. By integrating synergy potential, culture influences and the learning perspective, we suggest a multilevel perspective in understanding Chinese cross‐border M&A. A novel post acquisition integration approach, namely light‐touch integration, is investigated, and supported by newly assembled empirical evidence in the context of Chinese M&A in Germany. Light‐touch integration essentially synthesizes the preservation and symbiosis integration approaches due to the contextual characteristics of Chinese cross‐border M&A, such as cultural influences and the learning perspective. Understanding the cultural and learning influences can facilitate and smooth the activities involved in the post acquisition phase. The light‐touch integration approach offers ample opportunities for joint collaborations between and mutual benefits for acquiring firms, acquired targets and third party organizations. © 2013 Wiley Periodicals, Inc.     

Equilibrium concepts for time‐inconsistent stopping problems in continuous time

A new notion of equilibrium, which we call strong equilibrium, is introduced for time‐inconsistent stopping problems in continuous time. Compared to the existing notions introduced in Huang, Y.‐J., & Nguyen‐Huu, A. (2018, Jan 01). Time‐consistent stopping under decreasing impatience. Finance and Stochastics, 22(1), 69–95 and Christensen, S., & Lindensjö, K. (2018). On finding equilibrium stopping times for time‐inconsistent markovian problems. SIAM Journal on Control and Optimization, 56(6), 4228–4255, which in this paper are called mild equilibrium and weak equilibrium, respectively, a strong equilibrium captures the idea of subgame perfect Nash equilibrium more accurately. When the state process is a continuous‐time Markov chain and the discount function is log subadditive, we show that an optimal mild equilibrium is always a strong equilibrium. Moreover, we provide a new iteration method that can directly construct an optimal mild equilibrium and thus also prove its existence.     

Consumer perception of packaging: An eye‐tracking study of gluten‐free cookies

The growing interest in gluten‐free products makes it crucial to understand the mechanism of consumers' perception of gluten‐free claims. Due to the limited research measuring the influence of the type (verbal/nonverbal), number and location of gluten‐free statements on product labels on visual attention and consumers' purchase decisions, the main aim of this research was to evaluate the perception of gluten‐free claims and the Crossed Grain symbol on cookie packages of both consumers who are on a gluten‐free diet and those who are not. To that end, a questionnaire survey (600 respondents) and an eye‐tracking study (67 respondents) were carried out. The results showed that the respondents are aware of the basic rules of gluten‐free products' labelling, but 32% of those on the diet claimed that the products were not labelled properly. The analysis proved (p < .05) the significant relation between the number of gluten‐free claims and consumers' purchase intention. The respondents paid more attention to verbal gluten‐free claims than to nonverbal ones on packaging (p < .05). In the case of the Crossed Grain symbol, addition of verbal statement strengthened the information and decreased the respondents' level of uncertainty about a given product, which is important, especially for people newly adopting the diet. No difference in the visual attention to gluten‐free statements between the followers and non‐followers of the diet was found (p > .05), which allowed us to conclude that the perception of gluten‐free claims is an automatic process. These results suggest that designing product labels by considering the information architecture concerning gluten may help strengthen consumers' attitudes towards gluten‐free products and impact buying behaviour.     

HIGH‐ORDER SHORT‐TIME EXPANSIONS FOR ATM OPTION PRICES OF EXPONENTIAL LÉVY MODELS

The short‐time asymptotic behavior of option prices for a variety of models with jumps has received much attention in recent years. In this work, a novel second‐order approximation for at‐the‐money (ATM) option prices is derived for a large class of exponential Lévy models with or without Brownian component. The results hereafter shed new light on the connection between both the volatility of the continuous component and the jump parameters and the behavior of ATM option prices near expiration. In the presence of a Brownian component, the second‐order term, in time‐t, is of the form , with d₂ only depending on Y, the degree of jump activity, on σ, the volatility of the continuous component, and on an additional parameter controlling the intensity of the “small” jumps (regardless of their signs). This extends the well‐known result that the leading first‐order term is . In contrast, under a pure‐jump model, the dependence on Y and on the separate intensities of negative and positive small jumps are already reflected in the leading term, which is of the form . The second‐order term is shown to be of the form and, therefore, its order of decay turns out to be independent of Y. The asymptotic behavior of the corresponding Black–Scholes implied volatilities is also addressed. Our method of proof is based on an integral representation of the option price involving the tail probability of the log‐return process under the share measure and a suitable change of probability measure under which the pure‐jump component of the log‐return process becomes a Y‐stable process. Our approach is sufficiently general to cover a wide class of Lévy processes, which satisfy the latter property and whose Lévy density can be closely approximated by a stable density near the origin. Our numerical results show that the first‐order term typically exhibits rather poor performance and that the second‐order term can significantly improve the approximation's accuracy, particularly in the absence of a Brownian component.     

An explicit partial‐equilibrium model to justify the Generalized Marshall‐Lerner condition (GML)

Robinson's derivation of the Marshall‐Lerner condition (ML) is more general in that she considers a situation where initially the trade balance is not in equilibrium with the incorporation of the supply curves of exporters. This paper examines a partial equilibrium analysis of a country's imports and exports markets within a theoretical model which considers both the demand and supply sides in these two internationally traded‐goods markets. The aim here is to show explicitly how the Generalized Marshall‐Lerner condition (GML) of Robinson can be obtained. We examined the two effects of the nominal depreciation of the domestic currency on the trade balance: the volume effect and the value effect and how they counterbalance each other. We found that the standard Marshall‐Lerner condition (ML) was not sufficient when the trade balance was initially in deficit and it was also not necessary if the trade balance showed an initial surplus. Moreover, this study provides a new interpretation for Robinson’ sufficiency condition where the trade balance must improve following a nominal depreciation of domestic currency when the elasticity of foreign demand exceeds the ratio of imports to exports. This paper also examines the situation of a small open economy which could not influence the world prices where the foreign demand for exports and the foreign supply of exports are infinitely large. Finally, there is a discussion on two policy implications for exchange rate regulation: the amount of devaluation that is necessary to improve a given trade imbalance as a governments intervention and additional support for the slow improvement of the trade balance in the short run after a devaluation policy known as the J‐Curve effect.     

Attachment orientations in business‐to‐business relationships

Attachment theory has produced an impressive body of evidence for explaining individual differences in personal relationship behavior. The current study examines whether attachment theory can be fruitfully extended to business‐to‐business relationships. Hypotheses about the impact of personal attachment orientations on key relationship constructs are developed and empirically tested in two business‐to‐business relationships. Customers who are securely attached in their personal relationships with their romantic partners experience higher levels of satisfaction, trust, and repurchase intent in their business‐to‐business relationships. In addition, an attachment scale that is specifically tailored for a business‐to‐business context is developed. Two dimensions of business attachment are empirically derived: secure business attachment measures the ability and willingness to rely on the business partner, and close business attachment measures the desire to develop personal bonds with a business partner or its employees. The two business attachment dimensions can be used to segment customers with respect to their intrinsic retainability and their preference for personal bonding with their business partners. © 2009 Wiley Periodicals, Inc.     

Factors Influencing Growth Potential of E‐Commerce in Emerging Economies: An Institution‐Based N‐OLI Framework and Research Propositions

Given the tremendous success of the Internet and e‐commerce in developed countries, emerging economies are quickly embracing information technology as well. The purpose of this study is to examine factors (both determinants and deterrents) influencing the growth potential of e‐commerce in emerging economies from a multitheoretical perspective (namely, institution‐based network‐ownership, location, and internalization, i.e., i‐based N‐OLI framework). Factors are identified at three levels. At the global level, we identify multilateral agreements, strategic behavior of multinational enterprises (MNEs), and technological innovation as the key factors. At the national level, institutional environment, infrastructure, and culture are identified. The transactional level examines the role of integrity of transactions, online intermediaries, and network externalities and value clustering as the key factors for growth of e‐commerce in emerging economies. Based on the multitheoretical framework, the study advances several propositions and highlights implications for MNEs, both from developed markets and emerging markets, operating in emerging economies. © 2015 Wiley Periodicals, Inc.     

Redistribution in a Neo‐Kaleckian Two‐country Model

We investigate the interaction between demand‐driven growth and income distribution in open economies, by combining expenditure‐switching and demand spillover effects in a neo‐Kaleckian two country model. First, we specify elasticities of wage share and real exchange rate to the money wage relative to labor productivity, in order to precisely describe the distributive pass‐through from money wages to the labor share and the real exchange rate. Second, we analyze the demand effects of an increase in the money wage for given labor productivity (a redistribution towards labor) in both Home and Foreign country, as well as globally. We derive closed form results for two identical countries. These results indicate that redistribution towards labor at Home: (i) always increases growth globally if Home is wage‐led, but can lead to lower growth at Home relative to Foreign; and (ii) will always imply lower growth at Home relative to Foreign if Home is profit‐led, but can still be growth‐enhancing at Home. Thus, to the extent that countries are concerned with their relative economic performance, a fallacy of composition can emerge. Numerical simulations suggest that these fallacies could indeed occur. As a consequence, ‘returns to coordination’ over international labor policies might be substantial.     

Consumption‐Focused Self‐Expression Word of Mouth: A New Scale and Its Role in Consumer Research

This research represents the first systematic empirical examination of the motivation to spread word of mouth about consumption activities in order to self‐express, a phenomenon that has been observed in both the academic literature and the popular press. Consumption‐focused self‐expression is a motivation to engage in word‐of‐mouth communication that is distinct from other word‐of‐mouth motivations that have been discussed in the literature. This work defines consumption‐focused self‐expression word of mouth as communication about one's consumption activities for the purpose of expressing one's self‐concept and attracting attention to oneself. A scale to measure consumption‐focused self‐expression word of mouth is developed and shown to exhibit a consistent scale structure, acceptable reliability, and convergent, discriminant, nomological, and predictive validity. Scores on the consumption‐focused self‐expression word‐of‐mouth scale are shown to predict differences in the quantity and nature of consumers’ actual word‐of‐mouth communications via the social networking Web site Facebook.     

Sharing the value‐at‐risk under distributional ambiguity

This paper considers the problem of risk sharing, where a coalition of homogeneous agents, each bearing a random cost, aggregates their costs, and shares the value‐at‐risk of such a risky position. Due to limited distributional information in practice, the joint distribution of agents' random costs is difficult to acquire. The coalition, being aware of the distributional ambiguity, thus evaluates the worst‐case value‐at‐risk within a commonly agreed ambiguity set of the possible joint distributions. Through the lens of cooperative game theory, we show that this coalitional worst‐case value‐at‐risk is subadditive for the popular ambiguity sets in the distributionally robust optimization literature that are based on (i) convex moments or (ii) Wasserstein distance to some reference distributions. In addition, we propose easy‐to‐compute core allocation schemes to share the worst‐case value‐at‐risk. Our results can be readily extended to sharing the worst‐case conditional value‐at‐risk under distributional ambiguity.     

Pre‐schoolers,parents and supermarkets: co‐shopping as a social practice

The objective of this paper was to examine the co‐shopping practices of children and parents in supermarkets, i.e. the practical enactment of grocery shopping. Our special focus is on how informal consumer training occurs during parent–child interaction. We use observational data collected in spring 2008 in different Estonian supermarkets, post‐shopping interviews with parents and focus group interviews with their children. Our analysis is informed by practice theory, which helps to look in detail at how the activities in a particular situation are coordinated by understandings and procedures, and are guided by the engagement in a particular shopping trip. Co‐shopping interactions mostly revolve around particular material objects, although not exclusively. Product choice is a deeply contested area, where both parents and children face numerous pressures in this situation of two‐way socialization. There are implications for consumer education more broadly. To accomplish lasting and meaningful effects on the everyday lives of families, there has to be a wider range of actors – supermarkets, producers, governmental bodies, schools and families – who care about both formal and informal consumer education.     

The relative importance of specific self‐efficacy sources in pretraining self‐efficacy beliefs

Self‐efficacy is clearly important for learning. Research identifying the most important sources of self‐efficacy beliefs, however, has been somewhat limited to date in that different disciplines focus largely on different sources of self‐efficacy. Whereas education researchers focus on Bandura's original sources of enactive mastery, vicarious experience, verbal persuasion and negative emotional arousal, organizational researchers focus on learning, performance prove and performance avoid achievement goal orientations. To date, however, little research has examined the importance of a specific set of self‐efficacy sources after fully accounting for the influence of other sources. Data were obtained from 278 adult trainees who completed online Microsoft Excel training. Results suggest that once accounting for achievement goal orientation, Bandura's sources of vicarious experience and negative emotional arousal are still important contributors to pretraining self‐efficacy beliefs. As such, organizations seeking to maximize training effectiveness may wish to consider pretraining interventions simultaneously targeting achievement goal orientation, vicarious experience and negative emotional arousal.     

An empirical assessment of cross‐cultural age self‐construal measurement: Evidence from three countries

This study investigated which age measures, independent or interdependent, were better for cross‐cultural consumer research. Specifically, it assessed the fit between the “actual” and “ideal” self‐concept model within the framework of self‐construal theory by examining the actual and ideal self‐attributed age identity across South Korea ( n = 480), China ( n = 207), and France ( n = 338) using both independent and interdependent age identity scales. Multivariate analyses revealed differences for individuated self‐schemata across the three countries for actual and ideal age self‐construal, as well as for actual other‐referent interdependent age self‐schemata. However, the reverse occurred too: The ideal interdependent ages showed a lack of difference across the three different cultures. Overall, the results indicate that interdependent decade scales are better than independent age scales for cross‐cultural consumer behavior studies. Though such scales are more complex, they are easy to translate and to administer, and simple to analyze and to interpret. Evidence also suggests that such scales are reliable and robust across disparate samples in the countries studied. © 2011 Wiley Periodicals, Inc.     

Efficiency‐Seeking Emerging Market Firms: Resources and Location Choices

We study the efficiency‐seeking location choices of Indian software firms. In particular, we investigate the influence of heterogeneity in their resources on their location choices. The resource‐based view posits that firms face difficulties in transferring their resources in dissimilar host‐country environments. Prior research has investigated this phenomenon primarily for market‐seeking motives of multinational firms. With the help of hierarchical linear modeling, we analyze 650 location choices of Indian software firms and find that efficiency‐seeking firms face difficulties in locating in host countries with dissimilar and challenging labor environments. We find that the firms with core competence manifested through capability maturity model integration (CMMI) accreditation are able to overcome issues related to resource fungibility in dissimilar host‐country environments. © 2014 Wiley Periodicals, Inc.     

Pre‐purchase and post‐purchase satisfaction and fashion involvement of female tennis wear consumers

This study examined the relationship among pre‐purchase and post‐purchase satisfaction and fashion involvement of women who participated in tennis. As women's activities in sports, including tennis, are growing, it is necessary to investigate their clothing needs in order to meet consumers’ needs. A final sample consisted of 124 women who attended a Cortec United States Tennis Association Women's Pro Tournament. The questionnaires were personally distributed and collected during the tournament. The theoretical base for this study was the Engel, Blackwell, and Miniard model on consumer decision making. There was a positive significant relationship between pre‐purchase satisfaction and post‐purchase satisfaction (P < 0.01). There was a positive significant relationship between pre‐purchase satisfaction and fashion involvement (P < 0.001). Also, there was a positive significant relationship between post‐purchase satisfaction and fashion involvement (P < 0.001). Comfort was identified as the most important clothing attribute and fit the second most important for women to achieve satisfaction before and after purchasing tennis apparel. Seventy‐two percent of the women indicated the need for improved fit of tennis wear. Women of all ages reported garment length as a problem for each garment type. Two major reasons for not purchasing tennis clothing were high prices and inappropriate sizes.     

Evaluation of a maltodextrin gel as a partial replacement for fat in a high‐ratio white‐layer cake

The performance of maltodextrin gel as a replacement (25%, 50%, 75% and 100%) for shortening along with sucrose and high fructose corn syrup‐90 (HFCS‐90), adjusted for sweetness in each treatment, was evaluated in a high‐ratio white‐layer cake formulation. Two controls were used as a reference to fat‐replaced cakes: control A (100% fat and 100% sucrose) and control B (100% fat with 50% sucrose/50% HFCS‐90), which closely matched the sugar system of the fat‐replaced cakes. Volume of cakes showed that treatment F (100% fat‐substituted) was significantly (P < 0.05) different from the other treatments. Crust and crumb L‐ and b‐values indicated that control B produced a dark crust (P < 0.05) with a light crumb (P < 0.05) whereas treatment E (75% fat substituted) produced a light crust (P < 0.05) and treatment F a darker crumb (P < 0.05) with a significantly (P < 0.05) higher moisture content. Degree of staling significantly (P < 0.05) increased over time for all treatments. Sensory results indicated that treatment F produced a significantly (P < 0.05) moister, less adhesive and cohesive cake. Tenderness and sweetness scores indicated that treatments E and F were significantly (P < 0.05) tougher and less sweet, respectively, when compared with the other treatments. Results from both the physical and sensory analyses indicated that the combination of maltodextrin gel up to a 75% reduction for shortening and sucrose/HFCS‐90 resulted in satisfactory cakes.