Disaggregated econometric estimation of consumer demand response by alcoholic beverage types

The paper presents estimates of price elasticities of demand for 12 disaggregated alcoholic beverages in Australia: premium beer, full strength beer, low alcohol beer and mid‐strength beer; red bottled wine, white bottled wine, sparkling wine, cask wine; dark and light ready‐to‐drink (RTD); and dark and light spirits. These disaggregated categories correspond closely to the commodities of interest to public policymakers with respect to taxation and health policies. The system of demand equations is estimated with Nielsen's data using a semiflexible Almost Ideal Demand System model in order to impose negative semi‐definiteness on the demand parameters. Results indicate elastic own‐price elasticities for virtually all commodities. Cross‐price elasticities suggest that beverages most linked with negative externalities, namely full strength beer, dark RTD and dark spirits, may need to be taxed jointly. Any proposed tax increase to cask wine may also result in consumers shifting demand to more undesirable beverages. The elasticity estimates are used to illustrate the effect of a hypothetical change towards taxation equalisation based on alcohol content. These elasticities offer crucially needed inputs for analysing any tax change policies.     

EFFICIENCY OF LIABILITY RULES WITH INTERDEPENDENT COSTS OF CARE

Abstract.  Most of the results of the law and economics literature relating to the question of efficiency of liability rules have been obtained in the context of two-party interactions in which the cost of care of each party is independent of the care level of the other. In this paper we analyse the question of efficiency of liability rules in the context of interactions in which the cost of care of at least one of the parties is not independent of the care level of the other and characterize efficient liability rules whenever possible and in all other instances we obtain impossibility results.     

Cross-listing and subsequent delisting in foreign markets

Employing a sample of stocks cross-listed and subsequently delisted from foreign markets, we examine the consequences of delisting to investors in terms of price, risk, and liquidity. We also provide a direct comparison between the firm's performance after a foreign cross-listing and after its subsequent delisting. We find a positive cross-listing and negative delisting effect on stock price, both of which dissipate in the long run. No significant changes in the market risk are found for either event. Foreign cross-listing and delisting are associated with increasing and decreasing long term trading volume respectively. Further analysis reveals that firms delist in response to low host market return and low firm trading volume in the host market. The changes in liquidity and market risk from delisting relate those from cross-listing. Finally, our results show that the bonding hypothesis fails to explain the listing premium and the delisting loss.     

Pharmaceutical drug misuse: are industry of employment and occupation risk factors?

We explore the misuse of pharmaceutical drugs in the Australian workforce, focusing on whether any differences exist between workers in particular industries or occupations. In terms of industry, being employed in hospitality is positively associated with pharmaceutical drug misuse, while being employed in finance, insurance and retail is inversely related. In terms of occupation, we find that being a labourer is positively related to misuse of pharmaceutical drugs, while being employed in managerial, professional, sales, clerical or administrative roles is associated with a lower tendency. Further analysis of occupational effects revealed that being in a blue‐collar occupation, as a whole, is positively related to pharmaceutical drug misuse relative to white‐collar employment. Moreover, being employed in higher status roles is associated with a lower likelihood of such behaviour. Our findings imply that particular workplace pressures, cultural norms and/or working conditions might be influential factors behind workers' drug misuse.     

Factors influencing the likelihood of customer defection: The role of consumer knowledge

Customer satisfaction is the predominant metric firms use for detecting and managing customers' likelihood to defect. But while satisfaction and defection are related, satisfaction is only a weak predictor of whether a customer will defect. This article suggests that for repurchase decisions that involve an information-based evaluation of alternatives to the incumbent, likelihood of defection will be influenced by “how much” customers know about those alternatives. The relationship between level of knowledge about alternatives and defection is examined in the context of actual health insurance choices. Results suggest that the level of objective and subjective knowledge about alternatives has a direct effect on likelihood of defection—above and beyond satisfaction level. The view of defection forwarded in this article suggests that managers may be able to gain additional control over customer defection through actions aimed at influencing how much customers know (or come to know) about alternative vendors. Anthony J. Capraro (tcapraro@unca.edu), an assistant professor at the University of North Carolina at Asheville, earned his Ph.D. in marketing in 1999 from the University of Texas after having spent 20 years in industry in marketing and marketing management positions. His current research interest focuses on developing and enhancing the value of a firm's customer base. Susan Broniarczyk (Susan.Broniarczyk@bus.utexas.edu), an associate professor at the University of Texas at Austin, earned her Ph.D. in marketing from the University of Florida. She serves on the editorial boards of theJournal of Consumer Research and theJournal of Marketing Research and the advisory board for the Association for Consumer Research. Her research, which examines consumer decision making and how consumers' knowledge structures affect their reaction to missing or conflicting product information, appears in theJournal of Consumer Research, theJournal of Marketing Research, andOrganizational Behavior and Human Decision Processes. Rajendra K. Srivastava (Rajendra.Srivastava@bus.utexas.edu) is the Jack R. Crosby Regent's Chair in Business and a professor of marketing and management science and information systems (MSIS) in the McCombs School of Business at the University Texas at Austin. He is also the Daniel J. Jordan Research Scholar at Emory University. He earned his doctorate from the University of Pittsburgh. His research, which spans marketing and finance, has been published in theJournal of Marketing, theJournal of Marketing Research, Marketing Science, and theJournal of Banking and Finance. His current research interests focus on the impact of marketing strategy and market-based assets on corporate financial performance, particularly in the context of technology-intensive products and services.     

Price sensitivity,government green interventions,and green product availability triggers intention toward buying green products

In the 21st century, environmental problems are wreaking havoc, and sustainability is now of primary importance. Several external factors like population growth, industrialization, development, and overexploitation of natural resources play a crucial role in environmental degradation. Thus, the present study endeavors to explore the impact of price sensitivity, governments green interventions and green product availability on green buying intention through the lenses of the theory of planned behavior and the theory of consumption values. It also intends to examine the moderating effect of demographic factors on green buying intention. A cross-sectional study was carried out. Responses were gathered through a self-administered questionnaire-based survey. The final data set of 708 respondents were subjected to structural equation modeling for hypothesis testing. Price sensitivity, government green interventions, and green product availability show negative and significant interaction effects. Perceived behavioral control shows a relatively more substantial impact on green buying intention. Indian consumers from the age group of 41–50 years relatively have higher intention toward green buying. Overall, gender does not reveal any different approaches to environmentally friendly products. Green marketers must focus on communicating the availability of green products to reduce perceived difficulty.     

Assessing and forecasting technology dynamics in smartphones: a TFDEA approach

Over the last 20 years, the smartphone technologies at the device level have undergone tremendous change. This paper puts forward a framework to characterise, assess and forecast the smartphone technologies at the device level. The study assesses and forecasts the technological advancement observed in smartphones using technology forecasting using data envelopment analysis with an objective to evaluate the technological rate of change in the device. A quarterly data set comprising 31 quarters from 2007 to 2014 was analysed for smartphone releases in a particular price range. For the validation purpose, the analysis was designed to set the point of forecasting somewhere in 2012 using the data set between 2007 and 2012, so as to forecast the technologies thereon till 2014. The results indicate that the rate of technological change in smartphones is accelerating.     

The determinants of access to health care and medicines in India

This article explores the issue of demand for health care and medicines in India where household share of total health expenditure is one of the highest among high- and low-income countries. Previous work found that important determinants include health status, socio-demographics, income and demand for care was inelastic. Compared with previous studies, this article uses large household data sets including data on medicine expenditure to explore health-seeking behaviour. Count models find that determinants include health status, socio-demographic information, health insurance, household expenditure and government regulation. Elasticities range from ?0.13 to 0.03 and are generally consistent with literature findings. For inpatient care, conditional on having at least one hospitalization, the expected number of hospitalizations increases with being male and household expenditure. Medicine expenditure accounts for a large share of household health expenditure. Low-income individuals could experience problems and raises important policy implications on the demand and supply side to improve access to health care and medicines for patients in India.     

Preplay communication, participation restrictions, and efficiency in initial public offerings

The extent to which the observed procedures for selling newissues are efficient is studied. We show that a posted-pricedmechanism, in conjunction with nonbinding preplay communicationand participation restrictions, leads to an allocation of thesecurity (and payment) that maximizes the seller's expectedrevenue, given the informational constraints imposed by theoptimizing incentives of the potential buyers.