Using export market performance to evaluate regional preferential policies in China

We evaluate the effectiveness of two types of preferential regional policy programs in China’s manufacturing sector. The primary goal of the Economic and Technological Development Zones (ETDZs) is to facilitate internationalization strategies, while Science and Technology Industrial Parks (STIPs) aim to generate technology spillovers. Various dimensions of export market performance are used as objective indicators for the upgrading of product quality and firm operations. We compare startups that locate into one of these zones with startups on the outside, while controlling for self-selection using treatment evaluation methods. The results indicate that firms locating in an ETDZ achieve much higher export values, driven by higher volumes of trade and numbers of destinations. Firms locating in a STIP perform best on quality dimensions. In particular they fetch higher export prices and have more success exporting to high-income countries.     

What Drives Ireland’s Housing Market? A Bayesian DSGE Approach

We study the drivers of fluctuations in the Irish housing market by developing and estimating a dynamic stochastic general equilibrium (DSGE) model of Ireland as a member of the European Economic Monetary Union (EMU). We estimate the model with Bayesian methods using time series for both Ireland and the rest of the EMU for the period from 1997:Q1 to 2008:Q2. We find that housing preference and technology shocks are the main drivers of fluctuations in house prices and residential investment. A standard regression analysis shows that a good part of the variation of housing preference shocks can be explained by unmodeled demand factors that have been considered in the empirical literature as important determinants of Irish house prices.     

A field experiment on intertemporal enforcement spillovers

Enforcement can affect compliance directly and indirectly, through spillovers. We study intertemporal enforcement spillovers by conducting a randomized field experiment in a university exam. The initial phase of the experiment is the exam itself. We induce variation in enforcement by randomly assigning students to rooms with different monitoring levels. The second phase is post-exam. In this phase, all students are subject to the same low level of monitoring. Our outcome variable is the probability that students steal a pen in the post-exam phase. We find that enforcement in the exam phase has a strong intertemporal spillover on compliance in the post-exam phase: students subject to a high monitoring level in the initial phase are about 33% less likely to steal the pen than students subject to low initial monitoring.     

Dynamische Preissetzung — Wer profitiert?

In the context of digitalisation, recent approaches for automatic price adjustment are gaining importance. However, these approaches can affect consumer behaviour in a way which is disadvantageous for consumers, businesses and the state as a whole. In September 2016, consumer researchers met at the Heinrich Heine University in Düsseldorf in order to discuss the impact of dynamic pricing from the viewpoint of their research fields. As the articles make clear, the researchers found that dynamic pricing based on competitors’ prices is common, while personalised prices are extremely rare. The question arises as to what extent consumers consider dynamic prices unfair. The experts disagree about the necessity of a stricter legal regulatory framework. Furthermore, digital technology can be used to help consumers find their way through the complex online world. Ultimately, the question of who profits–the consumer or the trader–has not been settled. The discussants conclude that there is need for further research in many different research fields.     

Advertising in social media: a review of empirical evidence

This article presents an up-to-date review of academic and empirical research on advertising in social media. Two international databases from business and communication studies were searched, identifying 51 relevant studies. The findings of the identified studies were organized by seven emerging themes: use of advertising in social media, attitudes about and exposure to advertising, targeting, user-generated content in advertising, electronic word-of-mouth in advertising, consumer-generated advertising, and further advertising effects. Besides researched topics and major results, year of publication, journal, theoretical framework, research method, sample, measured constructs, and way of analysis were examined regarding each article. The review concludes by providing an agenda for future research.     

The wisdom of the minority

We consider a simple variant of the canonical model of social learning and show that in many situations it is optimal for an agent to abandon her own information and follow the minority rather than the majority. This possibility depends on two economically meaningful requirements: agents are differentially informed and observe only the number of agents having chosen each option, such as consumers observing only market shares. We show that minority wisdom arises when information is sufficiently heterogeneous and the well informed are not overly abundant, yet the conditions necessary are not overly restrictive. In fact, it is possible for the minority to be wise even when the minority consists of a lone dissenter and a majority of citizens are well informed.     

All equilibria of the multi-unit Vickrey auction

This paper completely characterizes the set of equilibria of the Vickrey auction for multiple identical units when buyers have non-increasing marginal valuations and there are at least three potential buyers. There are two types of equilibria: In the first class of equilibria there are positive bids below the maximum valuation. In this class, above a threshold value all bidders bid truthfully on all units. One of the bidders bids at the threshold for any unit for which his valuation is below the threshold; the other bidders bid zero in this range. In the second class of equilibria there are as many bids at or above the maximum valuation as there are units. The allocation of these bids is arbitrary across bidders. All the remaining bids equal zero. With any positive reserve price equilibrium becomes unique: Bidders bid truthfully on all units for which their valuation exceeds the reserve price.     

Monetary Reference Points of Managers – Empirical Evidence of Status Quo Preferences and Social Comparisons

We explore whether monetary reference points affect managers′ job satisfaction. These reference points include a manager′s own status quo and the incomes of comparable managers within the same firm and also at the market level. Making use of a unique panel data set of managers in the German chemical sector, we find that social comparisons of compensation do affect reported job satisfaction. Both the relative income position within a manager's own firm and a manager's wage rank on the market have positive relations with job satisfaction. There is no evidence of the relevance of status quo considerations once we control for firm‐related pay variables.     

Brand misconduct: Consequences on consumer-brand relationships

This paper investigates the effects of brand misconduct on a consumer-brand relationship. Brand misconduct describes a brand's behavior that disappoints consumers' expectations of the brand, for example the alleged use of child labor in soccer ball factories contracted by Adidas, Nike and Puma. Based on relationship and congruency theory, this paper develops a model to explain consumer-brand relationship and its impact on consumers' repurchase intentions. According to this model, functional congruence, actual and ideal self-congruence, partner quality and brand relationship quality represent factors determining repurchase intention. An empirical investigation with regard to jeans brands serves to test the postulated relationships in two distinct situations: before and after brand misconduct. On the one hand, the findings provide a deep insight into the consequences of brand misconduct. On the other hand, the results enable practitioners to develop sustainable brand strategies and create lasting brand preferences.