Bribery in international business: Whose problem is it?

Bribery is a frequently discussed problem in international business. This article looks at the problem from the North American and from the developing country perspective. It describes and analyses specific cases and highlights recurring patterns of behavior.The article is based on the experiences of the authors who have been promoting business in the developing world. In addition to ethical considerations involved with bribery there are some very practical reasons for not engaging in the practice. There are also real barriers to establishing the relationships necessary to avoid the practice yet continue doing business. Henry W. Lane is Associate Professor of Organizational Behavior at the School of Business Administration, The University of Western Ontario, London, Ontario. He is at present Director of the Centre for International Business Studies. His most important publication is: Managing Large Research and Development Programs (with Rodney Beddows and Paul R. Lawrence), (State University of New York Press, Albany, 1981).Donald G. Simpson is Associate Professor at the University of Western Ontario. He is at present Associate of the Centre for International Business Studies. He was formerly Associate Director of Social Sciences Division at the International Development Research Centre, Ottawa, Canada and Executive Director of the Office of International Programs, University of Western Ontario.     

Forecasting the Yen/U.S. Dollar exchange rate: Empirical evidence from a capital enhanced relative PPP-based model

This study uses a relative purchasing power parity (PPP) model based on price indexes (consumer, CPI or traded-goods price indexes, TPI), interest rate differentials, and a linear forecasting technique to determine the horizon over which such a model outperforms a random walk in forecasting the Yen/U.S. Dollar exchange rates out-of-sample. The results improve if one adjusts a simple CPI-based PPP-model by interest rate differentials, while the best results are obtained using a TPI-based PPP-model. For example, the TPI-based model, adjusted by interest rate differentials, is able to statistically significantly outperform the pure random walk starting at forecast horizons of 1 month.     

Bergstrom,Blume, and Varian: Voluntary contributions and neutrality

Bergstrom, Blume, and Varian provided a neutrality result for the private provision of public goods that has inspired a considerable literature. The result has significant implications for income redistribution and broader policy interventions. This paper reviews the basic result and its applications, and discusses extensions to general private provision economies.     

Emotions,deliberations, and end‐of‐life products

Death is inevitable; yet, not all consumers prepare for death by purchasing end‐of‐life (EOL) products. Using the theory of reasoned action (TRA) and the dual‐process model framework, this study aims to examine the role of emotions and cognitions in influencing consumers' decisions to engage in planning for death. A mixed methodology design was used. Study 1, a qualitative study, uncovered positive and negative emotions and deliberative reasoning that comprise consumers' EOL purchase decision process. Study 2, a quantitative study, confirmed that emotions and deliberations independently and jointly influenced consumers' EOL attitude and behavior and that emotions affected deliberations for both prepaid funerals and wills. Subjective norms outperformed attitude in predicting both products' purchase behavior. These finding supported the dual‐process model of behavior and the TRA in the EOL research context and contributed to the EOL literature by investigating the effects of emotions and deliberations concurrently; thus validating the important role of emotions in influencing EOL planning and purchase. In light of our findings, marketers could, after due cognizance of the morbidity and sensitivity of the topic, develop actionable promotional and segmentation strategies for EOL products and other emotion‐laden, unsought products and service.     

Understanding New Resource Projects

The surge in new resource projects has been a prominent feature of the recent strong performance of the Australian economy, with mining and energy investment accounting for almost one‐half of all private investment. Although the current round of resource investment has now peaked, as swings in the resource sector tend to repeat themselves, there is an ongoing need to carefully understand the available information sources. We use a specially developed panel of matched projects from three widely followed, but under‐researched, sources to analyze cost inflation, the biases, the degree of independence, and timeliness of each source. This information is of use to policy makers who have to closely monitor these developments, analysts following the resources sector, and project proponents wanting to know something about the typical cost profile of a project.     

The robustness of the asymmetrically dominated effect: Buying frames,phantom alternatives,and in‐store purchases

Given a choice set of two alternatives, the addition of a third alternative that is clearly inferior to one of the existing alternatives (but not the other), can result in a shift of preference to the alternative that dominates the new alternative. The basic asymmetrically dominated effect, as it is called, is first demonstrated under two different buying frames of mind (“What would you buy?” and “What would most people buy?”). It is then shown that the third alternative may be recognized as an unavailable option, yet still cause a preference shift. Finally, the asymmetrically dominated effect is demonstrated for real, in‐store purchases. It is concluded that the effect is robust, has a wide scope, is quite sizeable, and is of practical significance. © 1999 John Wiley & Sons, Inc.