Hedonic prices and cost/benefit analysis

Hedonic prices have been used to evaluate the willingness to pay for attributes. We reformulate the notion of hedonic price from a composite price on housing to a unit price on traded quantities, in conformity with long run competitive equilibrium theory. This formulation was suggested (but not developed) by Rosen (J. Polit. Econ.82, No. 1 (1974), 34–35). By first characterizing an efficient allocation of consumers to space, we show that hedonic unit prices can be understood as a bid-rent function which supports the efficient allocation. This is despite the fact that the lots over which consumers bid are themselves endogenous. We show that unit hedonic prices reveal preferences in a manner different from composite hedonic expenditures.     

Using “Rapid Response” as a competitive tool

New technology allows companies to respond quickly to customer demands that differ from country to country. In the international arena, time and flexibility are competitive weapons.     

How do consumers evaluate risk in financial products?

Decision-making processes consumers use in investing lump sums are reviewed, focusing on how investment risk is perceived and assessed. Primary research was undertaken with investment customers to explore the role played in evaluation of investment risk by risk perceptions and risk propensity. Both the literature review and the research findings indicate the central role risk perceptions play in financial decisions. Sitkin and Weingart's risk model is used as a research framework. Risk propensity and risk perception were found to be negatively correlated, however, deposit accounts were selected for investment irrespective of how risky a respondent considered them to be. Risk perceptions and expected return were positively correlated for all asset types apart from property. Further investigation revealed that experts exhibited positive correlation in risk return judgments but novices showed no correlation. There was no correlation between risk and return for either novices or experts for property. Return expectations were positively correlated with investment allocation. Provision of past performance information appears to create an expectation for future returns around the same level as past returns. Research findings suggest that outcome history is a predictor variable, with a Positive outcome history leading to higher risk Propensity. The level of risk customers are assuming shows a significantly increasing trend.     

The effects of between‐partner congruity on consumer evaluation of co‐branded products

Branding studies, especially those focusing on brand extension, have often centered on establishing the relationship between consumer evaluation and the match between a product concept and the brand (concept congruity). This study introduces an additional type of congruity that arises in the evaluation of co‐branded products, the congruity between brand partners (between‐partner congruity). Between‐partner congruity has not previously been explicitly considered in the co‐branding literature, but is potentially an important influence on consumer perceptions of a brand partnership. Thus, this study represents an initial attempt to understand how the level of between‐partner congruity will affect consumer response to cobranded products. Several findings in the marketing literature have suggested that when respondents have the motivation to resolve incongruity, the relationship between congruity level and evaluation is nonmonotonic. In other words, moderately incongruent concepts are preferred to congruent or highly incongruent concepts to form an “inverted‐U” data function. Yet, when motivation to process is low, evaluation becomes less favorable in a linear fashion as incongruity increases. This study examines whether these findings can be extended to co‐branding. When concept congruity is controlled across brand pairs, the nonmonotonic relationship between between‐partner congruity level and product evaluation is observed when consumers are encouraged to elaborate on the rationale for the partnership (high involvement). However, when consumers attend to the global similarity of the partners (low involvement), product evaluation becomes less favorable as between‐partner incongruity increases. © 2007 Wiley Periodicals, Inc.     

Public goods and the paying public

This paper proposes a way to undercut anarchist objections to taxation without endorsing an authoritarian justification of government coercion. The argument involves public goods, as understood by economists and others. But I do not analyse options of autonomous prisoners and the like; for, however useful otherwise, these abstractions underestimate the real-world task of sorting out the prerogatives of and limits on ownership. Proceeding more contextually, I come to recommend a shareholder addendum to the doctrine of public goods. This recommendation involves modifying the public goods argument for government coercion to include a contributor-specific compensation provisio, thinking of contributors as investors, and including among the latter those whose investment is in the form not of a market transaction strictly speaking but of sacrifice. To reach this recommendation I constrain the market liberal's limited endorsement of taxation by drawing on the (idealized) postcommunist privatizer's continuing commitment to populism.Edmund F. Byrne is Professor of Philosophy at Indiana University in Indianapolis. His research interests center on policy and practices regarding technology, community, and social welfare. His most recent book isWork, Inc. (Temple University Press, 1990); and he is now writing another tentatively subtitledDemocracy, Civil Society, and Benevolence.     

Towards Enforceable Bans on Illicit Businesses: From Moral Relativism to Human Rights

Many scholars and activists favor banning illicit businesses, especially given that such businesses constitute a large part of the global economy. But these businesses are commonly operated as if they are subject only to the ethical norms their management chooses to recognize, and as a result they sometimes harm innocent people. This can happen in part because there are no effective legal constraints on illicit businesses, and in part because it seems theoretically impossible to dispose definitively of arguments that support moral relativism. Progress is being made, however, towards a “second best” arrangement consisting of widespread institutional agreements regarding ethical norms. This development might eventually enable us to transcend moral relativism in some respects. Indeed, although some business ethicists who examine illicit business practices accept moral relativism, others attempt to surmount it. The latters’ endeavor, I show, is cross-cultural in nature in that it involves businesses that are deemed illicit in at least one but not every culture. I then recall some traditional solutions and their limits: ideological teachings are culture-specific, hence both temporally and spatially limited; legal constraints, though potentially helpful, are too diverse hence often narrow in reach. Especially problematic are defense industry businesses, which are inherently transcultural and, though uniquely harmful, are not effectively banned in any culture. Harm to quality of life (QoL) can, however, be measured. So I recommend institutional support for international human rights tied to QoL data as a workable way to counter moral relativism regarding illicit businesses.     

Retaining volunteers for the cause: Hope and pride associated with cause-related charity events in cancer control

Special charity events are an important source of revenue for non-profit organisations in cancer control yet volunteering is declining and turnover is high. Experiences at cause-related events may influence retention, particularly emotions connected to the cause and ceremonies which honour cancer survivors and remember loved ones. We explore the degree to which emotions associated with cause-related volunteering and collective action in the literature are felt in response to Relay For Life and what emotions predict three indicators of retention: intention to return for future events, satisfaction with volunteering, and organisational commitment. Volunteers (n = 410) completed a cross-sectional survey at Relay For Life events in Queensland, Australia. Multiple regression analyses examined whether emotions associated with events predicted each indicator of retention, adjusting for number of years spent volunteering for events. Sixty-two percent reported an intention to return the following year. The most commonly reported event-related emotions were hope, pride, and empathy (62–69%). Intention to return, satisfaction, and commitment were each significantly predicted by hope and pride. The findings suggest special charity events in cancer control could retain volunteers by fostering pride and hope (e.g., for a cancer free future); however, future prospective research which examines the mechanisms of these relationships is warranted.     

Book Review

This article presents the findings of an investigation into issues related to product standardisation in service industries. A brief review of existing literature on the subject is followed by a presentation of the findings of parallel surveys carried out at two UK holiday villages owned and operated by a leading European leisure company. The conclusions reached were that a service product can be successfilly standardised in the mind of the consumer but only if a clear positioning strategy is adhered to.