Stock exchange mergers and market efficiency

The aim of this article is to examine the impact of stock exchange mergers on the degree of informational efficiency. For this purpose, we apply the generalized spectral shape test for the martingale difference hypothesis to the stock returns before and after the 31 domestic and cross-border mergers completed from 1997 to 2011. The test is conducted with moving subsample windows, allowing us to detect the periods of (in)efficiency, and thus to conduct a comparative analysis for pre-merger and post-merger periods. We find that higher levels of efficiency are less frequent than lower levels of efficiency after a stock exchange merger. We also find that the impact on the level of efficiency depends on a range of merger characteristics such as the level of development, size, geographical diversification and industrial diversification of stock exchange.     

The Price Effects of Using Firewalls as an Antitrust Remedy

Antitrust authorities have imposed firewalls between the previously separate divisions of newly vertically integrated firms in several industries, to address concerns that access to horizontal rivals’ proprietary information may reduce competition. This paper evaluates a specific antitrust concern by modeling the price effect of one seller’s learning its rival’s production costs before bidding in a duopoly procurement contest. The results show that imposing a firewall as a condition for permitting a vertical merger actually can lead to higher prices than if the flow of information were unimpeded, and they provide guidance as to when this unintended outcome occurs.     

The costs of increased localization for a multiple-product food supply chain: Dairy in the United States

There is increased interest in greater localization of food supply chains but little evidence about the effects of localization on supply-chain costs. Assessing these effects is complex in multiple-product, multi-process supply chains such as the dairy industry. In this study, we develop a spatially-disaggregated transshipment model for the US dairy sector that minimizes total supply-chain costs, including assembly, processing, interplant transportation and final product distribution. We employ the cost-minimizing solution as benchmark to compare alternative scenarios of increased supply chain localization. Our results indicate: (1) short-run limits to increased localization, (2) modest impacts on overall supply-chain costs, and (3) large cost re-allocations across supply chain segments, regions and products. We find that increased localization reduces assembly costs while increase processing and distribution costs. Cost increases are larger in regions with smaller raw milk supplies and during the season when less raw milk is produced. Minimizing distances traveled by all dairy products results in tradeoffs across products in terms of cost and distance traveled. The relationship between increased localization and costs appears to be nonlinear.     

The ownership and use of small kitchen domestic appliances: case study,Liverpool

The nutritional habits of UK consumers have become a cause for concern with an increasing number of people suffering from diseases related to nutrition. The way in which food is prepared may contribute to the nutritional content of the diet. Traditional methods of cooking and eating are being influenced by increased ownership of domestic appliances. This study aimed to carry out a cross sectional study of people living on Merseyside to determine the ownership and use of small kitchen domestic appliances in relation to the possible consequences the appliances may have on the nutrient intake of the individual. An opportunistic sample of 276 female adults aged 25–70 years was recruited from amongst university staff and community groups within Merseyside. Data were collected using a self‐completion questionnaire consisting of questions concerning personal details, the ownership and use of domestic appliances that may influence nutrient intake. The Liverpool John Moores University Ethics Committee granted ethical approval. Microwave ovens, electric toasters and grills were owned by 80% of the population. Coffee makers, handheld electric food mixers, sandwich makers, blenders and food processors although owned by over 45% were used by the majority only once a week or less. Newer items such as a bread maker were owned by 9% who were significantly more likely to have a professional occupation. Those with unskilled occupations were significantly more likely to own a deep fat fryer and least likely to own a food processor. Those aged 25–34 years were significantly least likely to own a handheld food mixer. Households comprised of couples with or without children were significantly more likely to own sandwich makers, bread makers, food processors and handheld food mixers. No difference in the use of the appliances was found with occupational group or age. A large percentage of people own a variety of domestic appliances, the use of which may have a beneficial effect on their nutrient intake, however, it is of concern that those in the lower socio‐economic group were more likely to own appliances that will have a negative effect on their diet.     

The temporal nature of growth determinants in new bank foundings: implications for new venture research design

Several authors have suggested the founding period as a critical time in the development of a firm, arguing that the resource and decision choices made at this point have a substantive impact on the firm's future. Yet, historically, most studies have measured new venture choices considerably after the founding period. We suggest that the uniqueness of the founding event is important and test its validity through the examination of two implicit assertions. These implicit assertions are those of temporal stability and temporal locus of growth determinants.     

Ethics in Information Technology and Software Use

The emerging concern about software piracy and illegal or unauthorized use of information technology and software has been evident in the media and open literature for the last few years. In the course of conducting their academic assignments, the authors began to compare observations from classroom experiences related to ethics in the use of software and information technology and systems. Qualitatively and anecdotally, it appeared that many if not most, students had misconceptions about what represented ethical and unethical behaviors in these realms. Clearly, one can argue that if college students are uncertain about what constitutes appropriate and inappropriate behavior then this uncertainty will be carried forward into their workplaces upon graduation. Furthermore, if their workplaces don't provide ethics training as a component of a new employee orientation program, one can project a potential for unintentional violations and infringements of copyrights and law in the field. This study was conducted among graduate and undergraduate students to gain insight into their attitudes, perceptions and understanding of some of the relevant ethics issues. A questionnaire of 11 statements was employed that described ubiquitous but most likely unethical (or surely dubious) behaviors in the prevailing business and academic environments. Each respondent was asked to evaluate each statement twice (once for “self” and once for “colleague”) on a five-option highly ethical (5) to neutral (3) to highly unethical (1) scale. The statements were worded such that lower instrument score was associated with higher ethical responses. The questionnaire's two-part structure was designed to solicit honest answers. The encouraging learning from this study was that the overall sample and its various sub-samples did not consider any of the eleven behaviors to be “ethical” or “highly ethical.” It was also encouraging to note that the overall sample and all sub-samples considered “highly unethical” those behaviors associated with personal privacy or property or outright theft. This indicated that moral judgment and probity prevail. The discouraging learning was that behaviors associated with the use of enterprise property were viewed as “neutral” i.e., neither “ethical” nor “unethical.” These findings suggested confusion and lack of clarity and definition around workplace deportment as it regards ethics in software and information technology use. The current study suggests that additional research needs to be conducted to define and clarify the issues, which in turn can form the basis for programs to rectify or at least ameliorate the situation.     

Instability of Equilibria in Experimental Markets: Upward-Sloping Demands,Externalities, and Fad-Like Incentives

The objective of the paper is to study markets in which the value of the activity to any one person increases with the level with which the activity is undertaken by others. The general interpretation could be fads, mimicking behavior, or some sort of belief formation process in which the beliefs or expectations of agents about some underlying state of nature are influenced by the buying behavior of other agents. The result is to create a market that can be modeled as having an upward-sloping market demand curve. The questions posed are (i) in the fad-like environment, does the classical concept of equilibrium (as an equating of market demand and market supply) accurately predict market behavior; (ii) can both stable and unstable equilibria be observed; and (iii) which of the two classical concepts of stability best describes the conditions under which instability is observed? Under the conditions of a fad-like demand side externality in a market organized by the multiple unit double auction (MUDA), market equilibration occurs at a point where demand equals supply. The disequilibrium behavior follows the dynamics of the Marshallian model of dynamics, as opposed to the Walrasian model. These results confirm and extend the major findings of Plott and George who studied a similar environment with a downward-sloping supply.     

Heterogeneous country responses to the Great Recession: the role of supply chains

Review of World Economics - The one time shock of the Great Recession in 2008/9 opens up the opportunity to study the sensitivity of countries to global economic shocks. Some countries are more...     

The history of consumption: A literature review and consumer guide

The history of consumption is fast becoming a vital area of academic research. For the social sciences, in general, this new field promises new insight into the great transformation of Western society. For consumer research, in particular, it promises the opportunity to create new perspectives, sources of data, and theoretical concepts. The purpose of this paper is to review recent literature on the history of consumption, and to offer a consumer guide for those who wish to use it in the study of modern consumer behavior and policy.

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Die Geschichte des Konsums: Ein Literaturüberblick und Leseführer

Zusammenfassung Die Geschichte des Konsums wird immer stärker zu einem wichtigen Gegenstand der akademischen Forschung. Für die Sozialwissenschaften im allgemeinen gilt, daß das neue Feld völlig neue Einsichten in die große Tranformation der westlichen Gesellschaften bietet. Für die Verbraucherforschung insbesondere gilt, daß es neue Perspektiven eröffnet, neues Datenmaterial erschließt und die Bildung neuer theoretischer Konzepte ermöglicht. Der vorliegende Beitrag will über die neuere Literatur über die Geschichte des Verbrauchs orientieren und Einstiegshilfen für denjenigen geben, der diese Literatur bei der Analyse des heutigen Verbraucherverhaltens und der Verbraucherpolitik benutzen möchte. Dabei warnt der Beitrag gleich zu Beginn vor einigen naheliegenden Betrachtungsfehlern, vor allem vor einer allzu gegenwartsbezogenen Betrachtung, die vergangene Perioden vorranging als die Vorwegnahme oder zumindest die Vorbereitung unserer Gegenwart auffaßt, sowie vor der Gefahr einer Projektion der eigenen Sichtweisen und Einstellungen auf eine andere Zeit, also die Erforschung einer vergangenen Zeit ausschließlich mit Denkweisen von heute.Die weiteren Abschnitte behandeln die verschiedenen Zusammenhänge, in denen Konsum gesehen werden kann: den kulturellen, den soziologischen, psychologischen, politischen und intellektuellen Kontext, sowie den Marketing- und den Verbraucherkontext. Diese Überlegungen können — so die Schlußfolgerung des Beitrages — einen entscheidenden Beitrag zu der Frage beitragen, weshalb sich in den westlichen Gesellschaften so große Veränderungen ergeben haben, die sich nicht nur in einer industriellen Revolution, sondern auch in einer Konsumrevolution niedergeschlagen haben.

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Grant McCracken is Assistant Professor, Department of Consumer Studies, University of Guelph, Guelph, Ontario, N1G 2W1, Canada. He wishes to thank Russell Belk, Victor Roth, Montrose Sommers, Richard Vosburgh, and anonymous referees for their comments on this paper.