Makeshift markets and grassroots reponsibilization

ABSTRACT

Prior research has yielded insights into how market actors generate permanent, institutionalized structures. Investigate the emergence of a temporary marketplace, characterized by flexible socio-material constellations. We draw on ethnographic data collected within a refugee aid initiative, which assembled during the in 2015–2016, and was a response to the failure of institutional structures. We map out a process through which individuals are collectively moved to respond form social networks, and engage in market-making practices. We identify this process as the emergence of a “makeshift” market, and argue that it is a complementary form of institutional work, constituted by a grassroots process of responsibilization. We contribute to the literature on responsibilization and market dynamics by discussing (1) the emergence and decline of temporary and complementary marketplace structures and (2) mapping out a responsibilization process driven by moral outrage at the experiential level.     

Opening of China's Trade,Labour Market Reform and Impact on Rural Wages

Government policy in China supports urban wages at the expense of returns to farm labour. A model is developed to estimate how WTO accession and complementary labour market reform will influence factor returns in China. With WTO membership, a larger cut in manufacturing tariffs compared to agriculture will improve agriculture's terms of trade and will raise the agricultural wage. Complementary labour market reforms will further boost farm wages as labour exits agriculture in large numbers. We estimate that WTO membership and complementary labour market reforms will result in a decline in the agricultural labour force by about 25 per cent.     

Domestic Regulation and International Trade

We consider the effects of a one-sided price regulation of one of two complementary inputs. The provider of the regulated input is a domestic firm, while the provider of the other input is a foreign firm. This describes the market structure for several digital information and communication services, where the regulated input is access while the non-regulated complementary input is content. We show that one-sided regulation may have negative welfare effects compared to a free market economy, unless the regulator has a first-mover advantage. In the latter case, regulation is welfare enhancing regardless of whether the foreign input provider uses linear or non-linear wholesale prices.     

The performance implications of demand-side diversification: evidence from the US telecommunications sector, 1990–1996

This article contributes to the emerging demand-side perspective in strategy by explaining the demand-side sources of the systematic performance differences (a) between firms that diversify to offer complementary products and those who choose not to diversify, and (b) across and within diversifying firms over time. The US Telecommunications Services sector during 1990–1996 provides a dynamic research setting to test our hypotheses concerning the value-generating effect of shared demand-side strategic assets across the diversifying firms' home- and target-market. We find that the overall quality of demand-side strategic assets of local telephone companies who chose to diversify to offer complementary long-distance services (to their local telephony customers) is higher than those who chose not to diversify. We also find that the variation in market-shares of the diversified local telephone companies in their respective target market(s) for complementary long-distance services is positively influenced by the quality of demand-side strategic assets deployed in the target markets.     

Complementary Goods: Prices and Consumer Welfare Under Duopoly and Monopoly

We examine prices, profits, and consumer surplus for differentiated complementary goods under duopoly and a multi‐product monopoly. We find that little can be said about the relative magnitudes of prices of the components of a system of complementary goods under the alternative market structures. Although demand complementarity can lead to lower prices for either the primary or the secondary good under monopoly, both prices are not necessarily lower. The results unique to this paper are that, when two complementary goods form a system, the system price is unambiguously lower and consumer surplus and profits are higher under a multi‐product monopoly.     

产品市场竞争对经理层激励效果的影响研究

通过对我国转轨经济条件下的产品市场竞争对经理层激励效果的影响进行研究,并结合我国上市公司终极控制人的特征,对国有控股和民营控股公司中这种影响关系的差异进行系统比较。实证研究发现,只有当产品市场竞争程度超过一定水平后,产品市场竞争才会对经理层激励效果存在显著的正面影响,并且这种影响在民营控股企业中比在国有控股企业中更强烈。     

European Union Market Access Conditions and Africa's Extensive Margin of Food Trade

This paper examines the impact of two European Union (EU) market access regulations in the food sector presumed to simultaneously affect firms’ decisions to export food products to the EU. We analysed EU pesticide standards on African exports alongside a complementary non‐tariff measure in the form of a minimum entry price regulation, which aims to protect EU growers of certain fruits and vegetables against international competition. Analysis was based on Africa's exports of tomatoes, oranges, and lime and lemon to the EU between 2008 and 2013, using the gravity model of trade. Our results show that EU market access conditions constitute significant barrier to the formation of new trade relation between the EU and Africa. In addition, initiation of trade relationships is contingent not only on market access conditions but also on domestic market constraints in Africa. These results imply that negotiating preferential entry prices duties and the removal of domestic market restraints as well as strengthening domestic capacity to comply with EU standards to enhance continuous market access for the continent could stimulate food trade along the extensive margin.     

A Note on the Desirability of Merger among Complements

This paper examines the effects of the merger of firms producing complementary components on the quality choice. We extend the model of Economides 1999 to considerably general situations about the quality function, utility function, and distribution function of consumers, and establish the results that a complementary merger provides products of higher quality, and achieves higher market coverage, higher profits and higher consumer surplus than independent ownership.     

国内外市场需求、空间技术溢出与新型城市化

在系统梳理市场需求对新型城市化的作用机制基础上,本文采用面板FGLS法探讨我国地级及以上城市的国内外市场需求和空间技术溢出对新型城市化的影响。分析结果显示,国内市场显著加强了新型城市化进程中东部地区的技术溢出效应,阻碍了中西部地区的区际研发技术溢出效应的有效发挥;国外市场对东部地区的区际研发技术溢出效应和西部地区的区际沟通技术溢出效应具有明显促进作用,抑制了东部地区的区际沟通技术溢出效应;国内外市场的作用在东中部地区表现为互补关系,而在西部地区则为替代关系。     

Whisper forecasts of earnings per share: Is anyone still listening?

Whisper numbers—unofficial forecasts of earnings per share—were widely reported alongside analyst forecasts and actual earnings in the late 1990s. Bagnoli et al. (1999) showed that whispers appeared to be more accurate than analyst earnings forecasts for a small sample of high-tech firms. We extend their study and investigate whether the superior accuracy of whisper numbers extends to a broader sample, whether whispers have incremental information vis-à-vis analyst forecasts and whether the market rationally uses the information available in whispers. We find that analyst forecasts are more accurate than whispers; however, whisper forecasts contain value-relevant information incremental to analyst forecasts. We also find that the incremental information in whispers is fully incorporated into share price. Lastly we find that whispers are common for firms with lower forecast accuracy, and also that the presence of whispers improves the information environment of firms. Our findings imply that while analyst forecasts are the more accurate expectation of earnings, whispers play a complementary role in providing information about the firm. To the extent that managers convey information to the market in the form of whispers, this study shows that the private information is captured in the share price.     

Realizing the gains from trade: Export crops, marketing costs, and poverty

This paper explores the role of export costs in the process of poverty reduction in rural Africa. We claim that the marketing costs that emerge when the commercialization of export crops requires intermediaries can lead to lower participation into export cropping and, thus, to higher poverty. We test the model using data from the Uganda National Household Survey. We show that: i) farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in market-endowed villages; ii) market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); iii) households engaged in export cropping are less likely to be poor than subsistence-based households. We conclude that the availability of markets for agricultural export crops help realize the gains from trade. This result uncovers the role of complementary factors that provide market access and reduce marketing costs as key building blocks in the link between the gains from export opportunities and the poor.     

Competition in the Post-Trade Markets: A Network Economic Analysis of the Securities Business

In order to analyse the role of competition in the post-trade markets a normative network economic analysis of the securities business is provided. The theory of monopolistic bottlenecks constitutes the theoretical reference point for this analysis in order to identify stable network specific market power. It is shown that clearing and settlement are competitive value-added telecommunications services and therefore do not justify ex ante market power regulation. Precondition for competition on the markets for clearing and settlement is non-discriminatory access to the complementary technical regulatory function-the notary function (authenticity, registry, links between competing end custodians). JEL classification  L51, L96, G28     

A Bertrand model of pricing of complementary goods under information asymmetry

Parties in a supply chain, being independent firms, have private information about various aspects of the business not normally available to other parties. We consider a market where customers need to buy two complementary goods as mixed bundle, offered by two separate firms. The demand for each firm is dependent on the pricing strategy of both firms, which, in turn, depends on the quantities offered as per their own forecasts. We present a profit maximization model to obtain optimal strategies for a firm making decisions under information asymmetry. The model follows a simultaneously played Bertrand type game. We contrast and compare three scenarios: (1) when forecast information is asymmetric between the firms; (2) when forecast information is shared between the firms; and (3) when the firms form a strategic alliance.     

The Relative Impact of Market Orientation and Entrepreneurship on Export Performance: Do We Really Know Enough?

ABSTRACT

The impact of international corporate entrepreneurship and market orientation on firm performance is well acknowledged in the literature, but their relative influence on the performance of exporting firms remains inconclusive. This study seeks to help clarify the influence of these organizational resources by introducing a third complementary resource, namely commitment to learning. The results, based on data obtained from a survey of exporters in China, show that commitment to learning mediates the relationship between market orientation and entrepreneurship. It was also found that market orientation could be a double-edged sword for exporters in that it can enhance export satisfaction through entrepreneurship, but it can also have negative impact on profit.     

Performance implications of market orientation,marketing resources,and marketing capabilities

Abstract

Drawing on the competitive capability theory, this paper examines how market orientation, marketing resources, and marketing capabilities contribute to firm performance. The empirical results show that being market oriented influences the level of marketing resources firms possess and the capability to deploy such resources. The findings show marketing resources and marketing capabilities are significant drivers of firm performance, and their impact is greater when they are complementary to each other.     

How market orientation and outsourcing create capability and impact business performance

For most firms, developing the capability to compete and perform is crucial. The literature suggests that market orientation and outsourcing are two such sources for building capabilities in the marketplace. However, the relative contribution of market orientation and outsourcing to capability and superior business performance is unclear. To bring clarity, two pathways through which market orientation and outsourcing build capability and enhance business performance are proposed. Using data from foreign and Indian firms, the results indicate that both market orientation and outsourcing contribute to building capability, and that outsourcing further contributes to business performance. Also, it was discovered that low‐risk market‐oriented and high‐risk outsourcing firms experienced a positive impact on business performance. The implication of these results for managers is that market orientation and outsourcing can be complementary tools in their efforts to build capability, enhance business performance, and manage risky environmental conditions. © 2009 Wiley Periodicals, Inc.     

Technological complementarities, demand, and market power

Recent technological changes in many industries have generated numerous complementary technologies. A key implication of complementary technologies is that the demand for related services has tended to change both qualitatively and quantitatively. While the economics literature has examined various aspects, the effects of technological complementarity have not been fully flushed out. Using a simple model, this paper examines the implications of technological complementarity. How have firms’ pricing abilities changed with complementary technologies? What implications do complementary technologies have for regulation? Results show that technological complementarity has the potential to increase the market power of firms, possibly increasing prices to unprecedented levels. This holds whether demand elasticity is constant or variable. Policy implications are discussed.     

Analysing corporate political activity in MNC subsidiaries through the integration-responsiveness framework

Our study applies the well-known, market-strategy focussed integration-responsiveness (IR) framework and extends it to incorporate the non-market corporate political strategies of MNC subsidiaries. We find government regulation and the market strategies of integration and innovation have positive relationships with MNC subsidiary political activities. Interestingly, whereas the market strategy of innovation has a positive effect on subsidiary performance (but not on legitimacy), the non-market corporate political activities undertaken by MNC subsidiaries enhance subsidiary legitimacy (but not subsidiary performance). In addition, both market innovation and non-market subsidiary political activities are useful tools to gain favourable government decisions. Overall, our study incorporates both market and non-market strategies within a single overarching IR framework, and highlights their complementary role in achieving the twin goals of performance and legitimacy respectively.     

Retailers’ foreign market entry decisions: An institutional perspective

Institutional theory emphasizes the relationship between organizations and the environment. Institutions consist of political, cognitive and sociological elements that form the external and internal environment of a firm. Both external and internal environments affect firm decisions and behaviors. This paper introduces institutional theory as a complementary framework to explain international retailers’ foreign market entry choices and suggests propositions for further research. We also consider managerial implications in relation to this theoretical perspective as an explanation for retailers’ internationalization.     

How emerging market governments promote outward FDI: Experience from China

Large scale outward foreign direct investment (OFDI) by emerging market enterprises has become common in today's business world. Nested within the political economy perspective, this article elucidates why and how emerging market governments enthusiastically stimulate OFDI. Drawing upon our detailed analysis of the Chinese context, we developed the logic that OFDI promotion policies set by emerging market governments are economically imperative and institutionally complementary to offsetting competitive disadvantages of emerging market enterprises in global competition. This study presents the governmental institutions that impact Chinese OFDI, discusses evolutionary changes of OFDI policies, and describes current policies and measures that stimulate Chinese companies to expand into the global market. This article concludes with theoretical and managerial discussions wherein we call for convergence between two seemingly paradoxical views – institutional escapism and governmental promotion – presently used as an institutional logic explicating international expansion of emerging market enterprises.