Costs, margins and competition. Causes of structural change in retailing

The paper analyses causes of structural change in retailing in terms of productivity and profit. The analysis of productivity focuses on economies of scale, and briefly considers the effects of an extension of shopping hours. The analysis of profits considers the factors that determine average margin per type of trade. The results are used to explain trends of increasing scale, concentration and declining share of independents.     

A Cross-national Investigation of the Satisfaction and Loyalty Linkage for Mobile Telecommunications Services across Eight Countries

Improving customer satisfaction has become a strategic imperative for managers and researchers given the benefits of developing customer loyalty for long-term financial success. Creating these linkages becomes even more important in the context of mobile telecommunications due to the ubiquitous nature of mobile phones and the potential this creates to engage in interactive marketing for firms. Further, with increased global penetration of mobile telecommunications, examining cross-national differences in consumer attitudes and behaviors has become critical. Most studies that examine customer satisfaction and loyalty linkages however have traditionally focused on single countries and/or single industries. This study extends the literature by testing the moderating impact of cultural variables on the impact of satisfaction on loyalty intentions using data from 3,393 mobile telecommunications customers in Australia, Brazil, Canada, China, France, Spain, UK, and USA. Our findings reveal that the impact of satisfaction on loyalty in the mobile telecommunications context depends on cultural differences. The results demonstrate non-linear threshold effects where managers operating in countries characterized by self-expressionist values will have an easier time creating satisfaction and loyalty with mobile customers compared to those operating in cultures dominated by high survivalist values.     

Thinking Things Through: The Value and Limitations of James Buchanan's Public Choice Theory

Abstract

James Buchanan, one of the founders of Public Choice theory, applies the conceptual apparatus of economics to the public domain. This article investigates which assumptions are crucial to Buchanan's project, concentrating on methodological individualism and the Homo Economicus model. It shows that Buchanan from time to time moves away from these economic concepts, though only in minor ways. The article also focuses on Buchanan's normative emphasis on the role of institutions in coordinating self-interested individual actions in mutually beneficial ways. Criticizing Buchanan's analysis, the article argues that a broader view of the individual and of the role of institutions is necessary in a theory of constitutional choice.     

Sectoral productivity trends: convergence islands in oceans of non-convergence

Growth theory argues that thresholds can lead to multiple growth regimes, which are reflected in heterogeneous patterns of cross-country convergence and divergence. We study sectoral convergence patterns by using a new longitudinal sectoral database for 65 developed and developing countries. We employ an econometric method, quantile smoothing splines, which explicitly allows for identification of parameter heterogeneity both with regard to initial conditions (X-heterogeneity) and growth performances (Y-heterogeneity). Findings suggest that convergence is rather the exception than the rule.     

Price predictors in an extended hedonic regression framework: An application to wholesale cattle markets in Ethiopia

Livestock markets influence income generation for producers, but also accessibility and affordability of highly nutritious animal-sourced foods for consumers. Despite their importance, the functioning of livestock markets in lower-income countries is poorly understood and rarely studied compared to more developed countries. This study analyzes wholesale cattle markets in Ethiopia using a uniquely rich large-scale dataset covering both prices and cattle characteristics in 39 markets (in both highland and lowland areas) over a 10-year period, and hedonic regression models structured to understand both cattle price formation and seasonal and secular price dynamics. We show that cattle prices are influenced by a wide range of factors, including proxies for meat quality, religious fasting practices, climate-based seasonality but also climate shocks and availability of grazing land, competition from animal traction services, and rising consumer incomes. However, the implied effects of these factors are often significantly different in highland mixed crop-livestock areas compared to agro-pastoralist lowland areas, emphasizing the dualistic nature of cattle markets in Ethiopia. The analyses help inform the systemic challenges that Ethiopia will need to overcome to meet rising demand for beef products in the face of sustained income and population growth, as well as the adverse effects of climate change.