A Critical Investigation of the Bargaining Behavior of Tourists: The Case of Hong Kong Open-Air Markets

Shopping has long been recognized as an indispensable tourist activity. Hong Kong's open-air markets, where a multitude of bargaining activities can be observed, ranked as the second most popular of the island territory's diverse range of attractions in 2008 in terms of tourist arrivals. To develop cutting-edge marketing strategies that promote tourists' enjoyment of their bargaining adventure and ultimately enhance the overall shopping experience, the study reported in this article was aimed at identifying the dimensions underlying tourists' perceptions of the importance of 18 bargaining motivators and 12 bargaining attitudes and types of bargaining behavior, respectively, and subsequently evaluating the predictability of these underlying dimensions on tourists' shopping contentment indicators (overall bargaining satisfaction, the likelihood of a subsequent visit, and the likelihood of recommending open-air markets to others). A non-probability quota sampling technique was used to survey 203 Asian and non-Asian tourists in Hong Kong. A multivariate approach encompassing factor analysis and multiple regression was employed: Factor analysis delineated four underlying dimensions of factors affecting bargaining intentions. “Value for money” was shown to be the factor rated most important to tourists' bargaining intention; similarly, two underlying dimensions of bargaining attitudes and behavior—“bargain for psychological well-being” and “bargaining intensity”—were identified. Multiple regression results indicated the statistical significance of “bargaining for psychological well-being” and “bargaining intensity” to the existence of positive relations between shopping contentment indicators.     

“Business and Government” Then and Now

Socio-environmental conflicts are widespread, and global economic growth will likely increase them in the coming decades. While political ecology, the analysis of common pool resources, and ecological economics, among others, have provided praiseworthy insights into such conflicts, institutional approaches to these phenomena are still scarce. Classical institutional economics has occasionally been put to work on environmental issues, but proposed frameworks remain relatively underdeveloped. We wish to contribute to institutional research on environmental issues by building upon Bruno Théret’s interpretation of John R. Commons’s transactional model and applying the framework to a case of socio-environmental conflicts. First, we briefly sketch the landscape of institutional contributions (especially those that follow the classical institutionalist tradition) to the analysis of environmental issues. We explain why Commons has largely been ignored on these issues. Then, we analyze some of the key concepts of Commonsian economics that are of particular interest to our theoretical elaboration. Following this, we depict Commons’s transactional scheme and propose an application to a case of socioenvironmental mining conflict in Peru. Our framework could complement existing ones and shed light on the institutional dynamics of natural-resource management through conflict.     

Telling their own stories: Māori entrepreneurship in the mainstream screen industry

We examined how factors from Indigenous entrepreneurship research (social capital, cultural capital, self-efficacy) help explain the high level of Māori entrepreneurial performance in the mainstream screen industry. Results, based on ten case studies and a one-year series of structured interviews, extend prior research by showing that these Indigenous entrepreneurs benefit jointly from two forms of capital: cultural and social. We found high levels of both forms to increase the desire for emancipation of cultural and community identity – not just individual identity – through entrepreneurship. Self-efficacy and storytelling helped ameliorate discontinuities across Indigenous and mainstream contexts. Our research sheds new light on how Indigenous ventures can pursue mainstream entrepreneurship while maintaining cultural identity. It also makes several distinct contributions to the Indigenous entrepreneurship literature. First, it provides an integrative theoretic review. Second, it illustrates a culturally appropriate methodology for researching Māori entrepreneurs with implications for other Indigenous communities. Third, it proposes cultural capital and social capital as a two-part framework for explaining Indigenous entrepreneurial action. Fourth, it shows how entrepreneurship can be empowering for Indigenous communities. Finally, our paper demonstrates that entrepreneurship is a promising mechanism for preserving and promoting the cultures of Māori and other Indigenous peoples.     

Distinction or dichotomy: Rethinking the line between thymology and praxeology

The aim of this paper is to critically reexamine Ludwig Mises’ attempt to separate the psychological aspects of understanding (thymology) from the “science of action” (praxeology). There are, we contend, legitimate distinctions between theory, on the one hand, and, on the other, psychology or history. But, there is no need to dichotomize them from one another in the way Mises sometimes did.     

STATE DEPENDENT PRICING AND BUSINESS CYCLE ASYMMETRIES*

We present a tractable, dynamic general equilibrium model of state‐dependent pricing and study the response of output and prices to monetary policy shocks. We find important nonlinearities in these responses. For empirically relevant shocks, this generates substantially different predictions from time‐dependent pricing. We also find a distinct asymmetry with state‐dependent pricing: Prices respond more to positive shocks than they do to negative shocks. This is due to a strategic linkage between firms in the incentive for price adjustment. Our state‐dependent model can account for business cycle asymmetries in output of the magnitude found in empirical studies.     

Climate Change Taxes and Energy Efficiency in Japan

In 2003 Japan proposed a Climate Change Tax to reduce its CO₂ emissions to the level required by the Kyoto Protocol. If implemented, the tax would be levied on fossil fuel use and the revenue distributed to encourage the purchase of energy efficient equipment. Analysis using the MIT Emissions Prediction and Policy Analysis (EPPA) model shows that this policy is unlikely to bring Japan into compliance with its Kyoto target unless the subsidy encourages improvement in energy intensity well beyond Japan’s recent historical experience. Similar demand-management programs in the US, where there has been extensive experience, have not been nearly as effective as they would need to be to achieve energy efficiency goals of the proposal. The Tax proposal also calls for limits on international emission trading. We find that this limit substantially affects costs of compliance. The welfare loss with full emissions trading is 1/6 that when Japan meets its target though domestic actions only, the carbon price is lower, and there is a smaller loss of energy-intensive exports. Japan can achieve substantial savings from emissions trading even under cases where, for example, the full amount of the Russian allowance is not available in international markets.     

Determinants of the Effective Real Exchange Rate of the Synthetic Euro: Alternative Methodological Approaches

On the basis of historical data aggregated over the period 1973 to 2000, we have experimented with four different approaches to estimate the synthetic euro's equilibrium exchange rate. Using a number of competing models with the same data set, variable definitions and sample period offers the possibility to assess the uncertainty surrounding such equilibrium levels, both from an empirical (different estimates) and a theoretical viewpoint (different specifications). In this exercise, the 'Rest of the World' is proxied by the US, the UK, Japan and Switzerland, aggregated on the basis of trade weights.
We employed reduced form co–integration models, a structural VAR, a NATREX model (estimated in structural form) and the ECB's small–sized euro area wide macro–econometric model. In this order the approaches feature an increasing degree of 'structure', in the sense of the constraints based on economic theory embedded in the econometric models that were estimated. The results confirm the high likelihood for the euro having been undervalued in Q4 2000, while stressing the significant empirical and theoretical uncertainty with respect to the equilibrium exchange rate level.