THE EFFECT OF AUCTION FORMAT ON EFFICIENCY AND REVENUE IN DIVISIBLE GOODS AUCTIONS: A TEST USING KOREAN TREASURY AUCTIONS*

This paper measures the efficiency and revenue properties of the two most popular formats for divisible goods auctions: the uniform‐price and discriminatory auction. We analyze bids into the Korean Treasury auctions which have used both formats. We find that the discriminatory auction yields statistically higher revenue. Unlike previous work that uses data from only one format, we are able to compare the efficiency properties of the two formats. We find that the discriminatory auction better allocates treasury bills to the highest value financial institutions. However, the differences in revenue and efficiency are not large because the auctions are very competitive.     

Aversive Workplace Conditions and Employee Grievance Filing: The Moderating Effects of Gender and Ethnicity

Studies examining the direct effects of employee demographic differences on grievance filing have yielded mixed results. Moreover, little is known regarding the possible moderating effect that such differences might have on the link between workplace adversity and grievance filing. Using a sample of 866 blue‐collar workers drawn from four unions, we examine the potential moderating effects of gender and race/ethnicity. Our findings suggest that while gender and ethnicity are not significantly associated with perceptions of workplace adversity, grievance filing in response to certain forms of adversity is amplified among women (as compared to men) and among African Americans and Hispanics (as compared to whites). The meaning and implications of these findings are discussed.     

HOME MARKET EFFECT AND TRADE COSTS*

Concerning industrial location, the home market effect (HME) predicts that a large country is a net exporter of industrial goods. Recent literature shows that high transport costs in the traditional sector may obscure the HME in an early model of two sectors à la Helpman and Krugman. This paper presents an alternative model that displays the relationship between the HME and arbitrary transport costs while allowing for the derivation of analytical results by simple algebra. Our results show that the transport costs in the traditional sector do not obscure the HME but constitute a dispersion force that decreases the impact of the HME.     

Internationalization of Chinese and Korean firms

This article compares and contrasts the growth of Chinese and Korean multinational enterprises (MNEs). The article identifies the similarities and differences between Chinese and Korean MNEs in terms of motivations for internationalization, expansion strategies, and paths. The goal of this article is to contribute to the literature by shifting focus on host‐country conditions to home‐country conditions in explaining the drivers for firms' internationalization. We conclude that firms are motivated to expand abroad when faced with domestic competitive disadvantages resulting from absence or deficiency of one or more of Porter's Diamond attributes in their domestic market. Implications for further studies are also explored. © 2009 Wiley Periodicals, Inc.     

Retail bank selection in developed and developing countries: A cross‐national study of students' bank‐selection criteria

This exploratory research article is concerned with students' selection of retail banks in the United States and Ghana. It is a comparative cross‐national study aimed at revealing the factors determining retail bank selection among students in different environmental settings. The key objective is to establish if there are any significant differences and/or similarities in students' selection of retail banks in developed and developing economies. A similar data‐collection method was employed in the United States and Ghana to facilitate constructive comparison. The results identified four key factors—convenience, competence, recommendation by parents, and free banking and/or no bank charges—to be consistent across the two economies. The recommendation of the study is that in the context of an open and liberalized market environment, retail bank marketing strategies should be standardized irrespective of the national development stage. It concludes that retail bank managers particularly in developing countries should learn to provide consistent and good customer care. © 2009 Wiley Periodicals, Inc.     

Impacts of health and environmental consciousness on young female consumers' attitude towards and purchase of natural beauty products

This study investigated young female consumers' beauty product shopping behavioural patterns, their perceived importance of product attributes, and their attitude towards and purchase of natural beauty products. This study also examines whether consumers' product attitudes and shopping behaviours are influenced by their health and environmental consciousness. Data were collected from a convenience sample of 210 female college students enrolled at a south‐eastern university in the US. In order to examine the impacts of both health and environmental consciousness on other selected variables, the respondents were divided into four groups based on their scores on the two variables, and a series of analysis of variance were conducted to compare characteristics of the four groups. The results showed that health and environmental consciousness significantly influenced the importance placed on beauty product attributes. Additionally, those with a high level of both health and environmental consciousness were significantly more positive in their evaluations than those with low scores on both variables in their perceptions of natural beauty products. Those with low scores on both variables were significantly less willing than the other groups to pay more for natural beauty products. Analysis of variance results also indicated that the two groups with a high level of environmental consciousness purchased natural beauty products more frequently than those with a low level of health and environmental consciousness, indicating a relatively stronger impact of environmental consciousness than health consciousness on frequency of natural beauty product purchases. Health and environmental consciousness were both significantly related to a respondent's perceived level of knowledge of beauty products and ability to distinguish natural from conventional beauty products.     

The effects of sales promotion strategy,product appeal and consumer traits on reminder impulse buying behaviour

This article investigates factors of marketing communications and consumer characteristics that induce reminder impulse buying behaviour. Study 1 applies the antecedent, process and consequence approach to investigate the essential differences between reminder impulse buying and pure impulse buying. The results of Study 1 reveal that reminder impulse buying significantly differs from pure impulse buying on motivation, buying goal and decision evaluation. Study 2 further examines how sales promotion strategy might affect reminder impulse buying, with product appeal and consumer traits as moderating factors. Both sales promotion strategy and its interaction effects with product appeal are found to have significant influences on reminder impulse buying. Specifically, an instant‐reward promotion promotes stronger reminder impulse buying than a delayed‐reward promotion. Furthermore, both a utilitarian product appeal with a price discount promotion and a hedonic product appeal with a premium promotion can encourage greater reminder impulse buying.     

REAL AND DISTRIBUTIVE EFFECTS OF PETROLEUM PRICE LIBERALIZATION: THE CASE OF INDONESIA

The effect of higher petroleum prices on the aggregate price level, real growth, and income distribution is appraised within a multisector computable general equilibrium (CGE) model. A reduction in the government subsidy raises petroleum prices and production costs throughout the economy. Consumer demand, production, and income decline as output prices increase and consumer purchasing power decreases. The model is applied to and calibrated for Indonesia. The simulated results predict a slight increase in the price level and a slight decrease in output. An important result is that urban household groups will be the most significantly affected by the subsidy reduction.     

GOVERNANCE INSTITUTIONS AND PRIVATE INVESTMENT: AN APPLICATION TO THE MIDDLE EAST AND NORTH AFRICA

This paper addresses the issue of the low level of private investment in the Middle East and North Africa (MENA) region, with special emphasis on the role of governance. Based on the existing published reports, we categorize what types of governance institutions are more detrimental to entrepreneurial investments. We then estimate a simultaneous model of private investment and governance quality where economic policies concurrently explain both variables. Our empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of “administrative quality” in the form of control of corruption, bureaucratic quality, investment‐friendly profile of administration, law and order, as well as for “political stability.” Evidence in favor of “public accountability” is also found. Our estimations also stress that structural reforms like financial development, trade openness, and human development affect private‐investment decisions directly, and/or through their positive effect on governance.     

Sampling Minority Business Owners and Their Families: The Understudied Entrepreneurial Experience*

We here review and critique prior research on minority entrepreneurship, paying particular attention to the contributions and limitations of deployed sampling techniques and research methodologies. As based on this review, we then introduce the 2003 and 2005 National Minority Business Owner Surveys—a comprehensive and primary data collection effort that used varied methodologies to secure in‐depth information about random national samples of African American, Korean American, and Mexican American populations as well as a comparison sample of nonminority business owners. We present the initial business ownership profiles developed with these recent data, in part, as a benchmark of the U.S. entrepreneurial experience, and compare the profiles with those presented in prior research. These profiles document similarities and differences across the four groups and provide an empirical foundation for understanding the origin of those similarities and differences. No longer can we ignore the in‐depth study of minority businesses and their owning families nor can we simply assume that all businesses are the same, regardless of minority status or ethnicity.