Beware of Financial Repression: Lessons from History

Intereconomics - As austerity policies are unpopular with voters and high debt levels are a drag on growth, several economists, most famously Carmen Reinhart and Kenneth Rogoff, have suggested that...     

Hook vs. hope: How to enhance customer engagement through gamification

Many digital service providers have adopted gamification to promote customer engagement. Critical questions, however, remain about the most effective way to enhance customer engagement and increase sales by applying gamification. With a research design that combines qualitative and quantitative methods, including the use of objective sales data from a large field study and replication of the findings across different contexts, this study explores how gamification fosters customer engagement. Both field study results and a simulation study reveal gamification principles (i.e., social interaction, sense of control, goals, progress tracking, rewards, and prompts) that promote hope and consequently increase customer engagement and digital sales. Furthermore, we find that hope is more strongly associated with customer engagement than the psychological condition of compulsion, which even exerts a negative impact. This research thus explores how gamification creates value for customers and provides actionable insights for managers to foster hope through gamification as opposed to get customers hooked.     

Flexible estimation of price response functions using retail scanner data

Kalyanam and Shively [1998. Estimating irregular pricing effects: a stochastic spline regression approach. Journal of Marketing Research 35 (1), 16–29] and van Heerde et al. [2001. Semiparametric analysis to estimate the deal effect curve. Journal of Marketing Research 38 (2), 197–215] have demonstrated the usefulness of nonparametric regression to estimate pricing effects flexibly. The empirical results of these two studies, however, also revealed that nonparametric regression may suffer from too much flexibility leading to nonmonotonic shapes for price effects. In this paper, we show how the problem of nonmonotonicity can be dealt with without losing the power of flexible estimation techniques. We propose a semiparametric approach based on Bayesian P-splines with monotonicity constraints imposed on own- and cross-price effects. In an empirical application, we illustrate that flexible estimation of own- and cross-price effects can improve the predictive validity of a sales response model substantially, even when price response curves were constrained to show a monotonic shape, as suggested by economic theory. We also discuss the consequences from an unconstrained estimation of price effects.     

Consuming Alone: Broadening Putnam's “Bowling Alone” Thesis

Despite the popularity of Wi‐Fi technologies and social networks, many residents in developed nations are more socially isolated now than a few decades ago. Applying fuzzy‐set qualitative comparative analysis, using a nationally representative sample in one developed nation this study investigates the relationship between social isolation and advice‐giving and advice‐seeking behaviors with regard to brands or products. This study raises the proposition that people who are socially isolated lack the opportunity to give and seek advice, and, thus, abstain from doing so. Additionally, the study proposes that lacking ability or motivation also represent causal conditions for isolation. The study also investigates consumer behavior outcomes of low advice‐giving and advice‐seeking behaviors; that is, pampering and status buying. The findings from an analysis of an omnibus annual survey of residents in one nation support the propositions that the study proposes from theory and are likely relevant for residents of most developed nations.     

Indoctrination or education? Intention of unqualified teachers to transfer consumption norms in home economics teaching

Almost two thirds of home economics (HE) teachers in Sweden are formally unqualified (FU). Historically, HE has focused more on fostering and prescribing the ‘right’ choices whereas the modern (2011‐) curriculum focuses on teaching consequences of choices and giving students tools for assessing alternatives. Restraining from prescribing norms requires a high degree of professionalism. The objective of this study was to empirically investigate the prevalence of intentions of FU teachers to prescribe consumption norms not supported by the curriculum. Furthermore, to investigate to what extent these intentions are correlated with years of experience as a teacher, personal preferences, or personal consumption. The intention to transfer norms were measured using the concept of intentional misalignment applied to a survey distributed to a sample of FU teachers attending complementary teacher education. A two part survey was used. The first part consisted of multiple choice questions asking the teachers how important they saw it to transfer different consumption norms to their students (e.g. to consume local or organic food). These responses were evaluated quantitatively (Spearman rank correlation, Wilcoxon rank sum test and Kruskal‐Wallis analysis of variance). The second part consisted of an open‐ended question asking teachers to describe what they saw as the most important take‐home message for students in HE. The answers were compared to the national curriculum to identify intentions to transfer unsupported norms. The study indicates that more than a third of the FU HE teachers in Sweden express the intention to prescribe specific types of consumption or to transfer consumption norms that are not supported by the curriculum. The prevalence is correlated to personal preferences and thus indicates difficulties with keeping a professional perspective. These teachers must be given collegial support and opportunities for continued education–to ensure high‐quality HE education for future generations.     

ON THE CONSISTENCY OF REGRESSION‐BASED MONTE CARLO METHODS FOR PRICING BERMUDAN OPTIONS IN CASE OF ESTIMATED FINANCIAL MODELS

In many applications of regression‐based Monte Carlo methods for pricing, American options in discrete time parameters of the underlying financial model have to be estimated from observed data. In this paper suitably defined nonparametric regression‐based Monte Carlo methods are applied to paths of financial models where the parameters converge toward true values of the parameters. For various Black–Scholes, GARCH, and Levy models it is shown that in this case the price estimated from the approximate model converges to the true price.     

Initiating Negotiations: The Role of Machiavellianism, Risk Propensity, and Bargaining Power

Initiation is an often-overlooked yet essential stage of the negotiation process. This study examined the effects of two measures of personality—Machiavellianism and risk propensity—and relative bargaining power (as based on multiple situational factors) on three phases of the initiation process—engaging a counterpart, making a request, and optimizing the request. Using a multi-scenario approach, one hundred fifteen participants indicated their initiation preferences for three distinct negotiations. The results of repeated measures ANOVAs indicate that bargaining power influences an individual’s decision to initiate negotiations. In addition, those high in Machiavellianism choose to initiate negotiations even when relative bargaining power is low, whereas those high in risk propensity tend to optimize their requests. The implications of these findings for practitioners and future research are discussed.     

Health Information on the Internet

Electronic Health (e-Health) increasingly strives to provide health information and services to healthcare stakeholders via the Internet, and to actively involve patients in their care. One major chance for these participatory healthcare and patient-centered approaches that integrate patients in healthcare are the phenomena and ideas associated with providing information and healthcare on the Internet. This paper examines the existing body of knowledge on online health information and explores the current state of research through a review of literature as well as past and current research projects. The fundamental categories of the analysis represent the stakeholders in the healthcare sector, the connecting information flows, the information-transferring technological applications, as well as the categories of the TEMPEST model. Based on these findings, causes and future research fields are discussed. The technological category has the largest share of all categories. Based on these findings, causes and future research fields are discussed.