Seller Over-Pricing and Listing Contract Length: The Effects of Endogenous Listing Contracts on Housing Markets

This paper examines how seller pricing decisions influence listing contract length and how these decisions affect price and liquidity in housing markets. Because list price affects broker effort required to sell the property, brokers respond to seller overpricing by increasing the negotiated listing contract length. At the same time, sellers respond to longer listing contracts by adjusting their list price strategy. Both list price and length of marketing time affect broker sales effort and therefore a property’s realized selling price and liquidity. Analysis of house transaction data from Virginia indicates that greater over-pricing by sellers prompts brokers to pursue longer listing contracts, which subsequently lengthen marketing time but increase selling price. The results reveal a novel transmission mechanism from higher list price (which induces longer contracts) to selling price and liquidity.     

Hostile Attribution Bias and Negative Reciprocity Beliefs Exacerbate Incivility’s Effects on Interpersonal Deviance

The purpose of this study was to examine the moderating roles of hostile attribution bias and negative reciprocity beliefs in the relationship between workplace incivility, as perceived by employees, and their interpersonal deviance. Data were collected using a three-wave survey research design. Participants included 233 employees from a large manufacturing company in China. Hierarchical regression analyses were used to test the hypothesized relationships. Our study revealed that hostile attribution bias and negative reciprocity beliefs strengthened the positive relationship between workplace incivility and interpersonal deviance. This relationship was the most positive when both hostile attribution bias and negative reciprocity beliefs were high. The findings provided evidence that directing employees to depress hostile attribution bias and negative reciprocity beliefs may attenuate the effects of workplace incivility on interpersonal deviance. Implications for theory, research, and management practice are discussed.     

Factors affecting farmers market produce prices in Missouri

Produce marketers who participate as farmers market vendors or otherwise directly market their goods should understand not only the location-related characteristics that affect consumer selection of local, fresh produce but also the product attributes that consumers prefer to find in local products. Understanding attribute-price relationships will allow marketers to better plan for value-added marketing opportunities. Using a hedonic pricing model, this study analyzed the influence that product attribute levels have on prices for seven types of produce: sweet corn, tomatoes, cantaloupe, cucumbers, green beans, bell peppers, and zucchini. Based on data collected from Missouri farmers markets, multiple attributes affect produce price variation. In the dataset, one of the strongest effects was exerted by sale location. The importance of this finding is that prices can be collected in a single location and extrapolated to other farmers market locations, which implies reduced search and reporting costs in collecting representative farmers market produce prices. Additionally, a higher weight may increase prices for some types of produce but decrease prices of others after a certain point. Farmers market vendors, as well as other direct marketers, can use attribute pricing information to identify the quality attributes that consumers prefer.     

Industrial organization economics and Alderson’s general theory of marketing

Theorists in the field of industrial organization economics are beginning to develop formal models that are in many ways consistent with the assumptions and concepts of Alderson’s general theory of marketing. This article evaluates Alderson’s concepts of market heterogeneity, transactions, organized behavior systems, and sorting functions as they may relate to the recent work of organization economics theorists. An extended example is presented comparing Alderson’s theory with Kenney and Klein’s (1983) conclusions concerning block booking marketing arrangements. The new work in industrial organization economics may provide a framework for further conceptualization and justification of Alderson’s general theory by marketing scholars.     

Required human resources competencies in the future: a framework for developing HR executives in Hong Kong

The management of human resources has emerged as a critical factor in creating and maintaining the competitive edge of a business. The HR manger should be a business partner who plays the role as a diagnostician and a strategist in the company. Hong Kong HR practitioners are known to be poorly equipped to play such a part since professional HRM training in Hong Kong have largely neglected strategic aspects. At the time of the study, Hong Kong experienced its worst economic downturn since 1984 where bankruptcy and unemployment are at an all time high. This study aimed to provide updated views on the competency needed for future HR leaders in Hong Kong in face of the challenges ahead. Against the background of a literature review, a survey contrasted the views of CEOs and HR executives regarding the required level of competencies of future HR leaders in Hong Kong. The findings establish an empirical basis for a framework guiding the direction and content of the future development of HR practitioners in Hong Kong.     

Production Efficiency in the Austrian Insurance Industry: A Bayesian Examination

This paper examines the developments in the production efficiency of the Austrian insurance market for the period 1994‐1999 using firm‐specific data on life/health and non‐life insurers obtained from the Austrian insurance regulatory authority. The article uses a Bayesian stochastic frontier to obtain aggregate and firm‐specific estimates of production efficiency across insurer types and time. The study provides strong evidence that the process of deregulation had positive effects on the production efficiency of Austrian insurers. The life/health and non‐life firms showed similar patterns of development in that they were less efficient during the years 1994‐1996 and significantly more efficient in 1997‐1999. If the Austrian experience is representative, similar benefits from deregulation may be expected for the Central and Eastern European countries that prepare for the accession to the European Union.     

Fee waivers for tax-exempt money market mutual funds

In this study we investigate why tax-exempt money market mutual funds often waive fees. Contrary to statements in the popular press, our results provide weak evidence that fee waivers lead to asset growth. We find strong evidence, however, that fee waivers are used to keep the fund’s reported yield in line with competitors. We find that funds have comparable before-expense yields and that smaller funds generally have higher expenses. If all expenses were charged to investors, then smaller funds would significantly underperform larger funds. Thus, in order to keep reported yields in line with competitors, smaller funds must waive a significant portion of fees.(JEL G20, G21)     

Residential Real Estate Brokerage Efficiency from a Cost and Profit Perspective

Using 1994–1995 microeconomic data from the National Association of Realtors (NAR), this article estimates cost and profit X-efficiency levels in the residential real estate brokerage market using traditional and Bayesian stochastic frontier models. We find that firms err more from failure to maximize profits than from failure to minimize costs. To determine what characteristics influence efficiency, we perform a regression analysis. The results show that franchising and firm age are associated with increases in efficiency, while MLS affiliation and producing a balanced output of listings and sales decrease performance. Finally, we estimate economies of scale and find compelling evidence that firms are operating at increasing returns to scale.     

Industrialization and Values Evolution: The Case of Hong Kong and Guangzhou, China

This field study evaluated the convergence, divergence, crossvergence, and multi-crossvergence perspectives of value system evolution in industrializing regions. Value differences were identified among graduating business university students in the People's Republic of China, Hong Kong, and the United States. Specific value dimensions in this study reflected the primary influence of either industrialization or regional culture. Thus, our overall results suggest that both industrialization and culture influence the combination of values held in Hong Kong. This finding could be interpreted as supporting the crossvergence perspective of value system evolution. A more precise interpretation, however, is that some value dimensions converge with increasing industrialization, while others remain divergent.