Equity Risk, Conversion Risk, and the Demand for Insurance

Existing insurance theory fails when applied to real property because it does not account for variations in the economic environment. The article studies optimal property insurance in the presence of two sources of variation: equity risk and conversion risk. Equity risk is randomness of the value of a property. It tends to raise demand for conventional insurance. In contrast, conversion risk is randomness in the value the property would have if, after severe damage, it were converted to the highest‐valued use. It is distinct from equity risk because the highest‐valued use is typically not the current one. Under independent conversion risk, the optimum upper limit is a compromise among underlying conversion thresholds. Absent independence, the optimum can be quite different. Conversion risk can raise or lower the demand for property insurance. Insurance contracts that fail to address conversion tend to undermine the orderly disposition of obligations and reduce the gains from reallocation of risks through insurance.     

The evolution of the seven steps of selling

The traditional seven steps of selling is perhaps the oldest paradigm in the sales discipline. The seven steps model has served as a basic framework in sales training, personal selling textbooks, and teaching personal selling classes. Very little has changed in this framework since the turn of the 20th century. This article reviews the traditional seven steps of selling, examines transformative factors that have led to changes in each step, and presents an evolved seven steps process. While the traditional seven steps reflected a selling orientation on the part of a firm, the evolved selling process reflects more of a customer orientation in that the focus is on relationship selling—that is, securing, building, and maintaining long-term relationships with profitable customers.     

Search and Wholesale Price Discrimination

Firms often choose not to post prices in wholesale markets, and buyers must incur costs to discover prices. Inspired by evidence of customized pricing (e.g., some customers pay up to 70% more than others) and search costs, I estimate a search model to study how personalized pricing impacts efficiency in a wholesale market. I find that price discrimination decreases total surplus by 11.6% and increases the sellers' profits by up to 52.1%. These effects are partially explained by price discrimination softening competition through a decrease in search incentives, illustrating how price discrimination may magnify the efficiency costs of search frictions.     

Anchored putter ban: An examination of whether anchored putting impacts career success and putting performance

The Professional Golfers' Association (PGA) Tour ban on anchored putting (Rule 14‐1b) took effect on January 1, 2016. The ban remains controversial because the governance decision appears to have been made without adequate empirical evidence. Accordingly, to investigate the efficacy of the ban, the impact of using anchored putters on PGA golfers' career success and putting performance was examined. PGA golfers ranked in the top 125 were studied from 2009 to 2015. The analysis revealed an anchored putter offered no unfair advantage with regard to improving players' career success or putting performance when compared with standard putter usage by PGA golfers.     

Bound for entrepreneurship? A career-theoretical perspective on entrepreneurial intentions

International Entrepreneurship and Management Journal - Research on entrepreneurial intentions, as an important step in the decision to undertake an entrepreneurial career, tends to position career...     

Environmental practices in the wine industry: An empirical application of the theory of reasoned action and stakeholder theory in the United States and New Zealand

Industry transformation related to environmental stewardship has received significant scholarly attention over the past decade. However, limited theoretical and empirical work examines the motivations for improving environmental performance in an industry in different countries. In this paper, we develop a set of hypotheses, based in the theory of reasoned action and stakeholder theory, regarding drivers of the adoption of environmental practices in the wine industries of New Zealand and the United States. We test our hypotheses using data from survey questionnaires collected in each country. Our findings suggest that subjective norms and internal stakeholder pressures are common drivers of the adoption of environmental practices in these two countries. However, managerial attitudes and external stakeholder pressures are not significant drivers. We also find that managerial attitudes and export dependence are stronger determinants of environmental practice adoption in New Zealand compared to the U.S.     

Comments on the Institutionalist View of Reaganomics

Gender inequality is caused by numerous factors, among which one may find traditional division of labor, family, religion and many other institutions. The state also influences a position of women in society and economy. Nowadays most western states seem to engage in the promotion of equal status of men and women. The European Union (EU) is known for its policy of gender mainstreaming that has been implemented in member states. The EU, however, promotes a neoliberal approach in the economy that seems to be in contradiction to the promotion of gender equality.

In Poland, tendencies to liberate, privatize and deregulate are warmly welcomed as cures for economic underdevelopment. Gender equality, on the other hand, has been challenged as a relic of the former political system. In this paper, the author attempts to answer the question whether macroeconomic policy promoted by the EU influences the status of women in Poland.     

The Structure of the American Economy

We explore the relationship between input–output accounts and the national revenue function. The generalized inverse of an economy's technology matrix carries information relating changes in endowments with changes in outputs; its transpose relates output prices and factor prices. Our primary theoretical contribution is to derive an economy's revenue function for an arbitrary Leontief technology. Our main empirical contribution is to compute the national revenue function for the American economy in 2003 and to describe its properties. We implement our ideas using two different models: one where all factors are mobile and another with sector‐specific capital.     

Emic and etic interpretations of engagement with a consumer-to-consumer online auction site

This paper provides emic and etic interpretations of engagement with a consumer-to-consumer (C2C) online auction site, based on in-depth interviews with buyers. The study exposes three misconceptions about online C2C auctions; that the interaction between parties occurs exclusively online, that the relation between buyers and sellers is purely transactional in nature, and that the interaction between buyers and sellers does not lead to ongoing business relationships. The paper reveals the utilitarian, hedonic and social benefits that are the bases of engagement with the auction site. Social benefits materialize for auction buyers during offline exchanges. The paper also reveals marketer incentives and structural disincentives for consumers' ongoing use of the auction site.