HORIZONTAL MERGERS IN A DIFFERENTIATED COURNOT OLIGOPOLY

Using a standard differentiated goods quantity competition setting, we show three facts about horizontal two‐firm mergers that are not true for a homogeneous goods Cournot market. First, merger of two firms is profitable for the merging firms provided that goods are sufficiently distant substitutes. Second, merging of two firms can lead to more two‐firm mergers. Third, an initially non‐profitable two‐firm merger can occur in anticipation of subsequent mergers. These facts imply that mergers are more likely to occur in differentiated goods markets than in homogeneous goods markets.     

Living to save taxes

Does taxation affect the timing of death? This is an interesting example of how behavior might be affected by economic incentives. We study how two changes in Swedish inheritance taxation 2004–2005 have affected daily all-cause mortality. Our main result is that mortality decreased by 17% the day before the expected tax repeals began.     

Exchange Rate Instability: A Threshold Autoregressive Approach

We fit a two-regime threshold autoregressive model to a trade weighted index of the Australian real exchange rate. We find strong evidence of a threshold in the real exchange rate, with the data being classified into two regimes. The timing of the first regime is consistent with events that would be expected to have led to pressure on the Australian exchange rate. However, there is no evidence to suggest that the Asian economic crisis led to the real exchange rate entering this regime.     

Consumer entitlement theory and measurement

Previous studies of personality observe that a healthy individual maintains a level of entitlement. Consumer entitlement concerns the extent to which a customer expects special treatment in retail environments. To date, marketing scholars have not investigated consumer entitlement at the buyer–seller interface. This article represents an initial attempt to examine this construct in a retailing context. The development of a scale, the consumer entitlement inventory (CEI), is reported. The scale's psychometric properties were examined, with the use of an undergraduate sample ( N = 410). Antecedents and implications for consumer entitlement are discussed. © 2005 Wiley Periodicals, Inc.     

Duality,income and substitution effects for the competitive firm under price uncertainty

This paper uses duality theory to decompose the total effect on the competitive firm's output of an increase in the riskiness of output price into income and substitution effects. Properties of preferences that control the sign of each effect are identified. The analysis extends to the general class of quasi‐linear decision models in which the payoff is linear in the random variable. Copyright © 2005 John Wiley & Sons, Ltd.     

Making the link between work-life balance practices and organizational performance

The business case for work-life balance practices, as espoused by many organizations, rests on attracting better applicants and reducing work-life conflict among existing employees in order to enhance organizational performance. This review of the literature provides some evidence for the claim regarding recruitment, but there is insufficient evidence to support the notion that work-life practices enhance performance by means of reduced work-life conflict. We suggest that the business case may therefore need to be modified to reflect the number of additional routes by which work-life balance practices can influence organizational performance, including enhanced social exchange processes, increased cost savings, improved productivity, and reduced turnover. The impact of these processes may, however, be moderated by a number of factors, including national context, job level, and managerial support. The importance of further research into the effects of these practices is discussed.     

The corporate responsibility officer: A new position on the organization chart

As the corporation began to assume its modern form, new needs were identified and new positions incorporated in the hierarchy. Today, a new position is emerging-that of the corporate responsibility officer. The authors have gathered data from a cross section of major corporations currently showing interest in social responsibility in an attempt to deal with the organizational aspect of this work and with some biographical dimensions of the officers themselves. The findings indicate, for example, that most of the positions were established after 1968 and rank high in the organization, and that their holders report directly to the chief executive. All the officers seem to be mature, experienced, and highly educated and trained individuals, skilled in external relations.     

Fluctuations in convex models of endogenous growth, I: Growth effects

Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies finding a positive relationship, while others find a negative one. Our objectives are to understand how fundamental uncertainty affects the long run growth rate and to identify important factors determining this relationship in a convex endogenous growth model. Qualitatively, we show that the relationship between volatility in fundamentals (or policies) and mean growth can be either positive or negative. The curvature of the utility function is a key parameter that determines the sign of the relationship. Quantitatively, an increase in uncertainty always increases the growth rate in our calibrated models. Though the changes we find are nontrivial, they are not large enough by themselves to account for the large differences in growth rates observed in the data. We also find that differences in the curvature of preferences have very substantial effects on the estimated variability of stationary objects like the consumption–output ratio and hours worked. For this reason, we expect that the models considered in this paper will provide the basis of sharp estimates of the curvature parameter.