Guilty by Association: The Perils of Celebrity Endorsement for Endorsed Brands and their Direct Competitors

The objective of the research presented in this article is to examine the possibility that the adverse effects on consumer brand attitudes engendered by the involvement of a celebrity endorser in a negative event may spill over brands of the same product category (i.e., competitors). The results of an experimental study with 165 adult consumers showed that a scandal involving an athlete endorser had a negative impact not only on the attitude toward the endorsed brand, but also on the attitude toward competitor brands. This suggests that brands strongly associated with one sport may be vulnerable in the context of a scandal falling upon a celebrity athlete endorsing one of their direct competitors.     

Vertical product differentiation and two-sided markets

We model platform competition in a market where products are characterized by cross network externalities. Consumers differ in their valuation of these externalities. Although the exogenous set-up is entirely symmetric, we show that platform competition induces a vertical differentiation structure that allows for the co-existence of asymmetric platforms in equilibrium. We establish this result in two set-ups: in the first one platforms commit to prices, in the second one they commit to network sizes.     

The interaction of retail density and music tempo: Effects on shopper responses

Research examining the effects of store environment on shoppers has found that a number of atmospheric cues have significant effects on shoppers' cognitive, affective, and behavioral responses. To date, retail atmospheric cues have been studied in isolation, instead of simultaneously, like they occur in the retail setting. This study examines the interactive effects of two atmospheric cues—retail density and music tempo—and their impact on shopper responses within a real shopping environment. Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Significant main effects of music tempo are found for behavioral responses such as approach/avoidance tendency and extent of browsing behavior. The results underscore the need to examine interactive effects of atmospheric cues to better understand the impact of the store environment on shoppers. © 2005 Wiley Periodicals, Inc.     

Risk-neutral compatibility with option prices

A common problem is to choose a “risk-neutral” measure in an incomplete market in asset pricing models. We show in this paper that in some circumstances it is possible to choose a unique “equivalent local martingale measure” by completing the market with option prices. We do this by modeling the behavior of the stock price X, together with the behavior of the option prices for a relevant family of options which are (or can theoretically be) effectively traded. In doing so, we need to ensure a kind of “compatibility” between X and the prices of our options, and this poses some significant mathematical difficulties.     

Differential mortality and social security

Abstract This paper studies the normative problem of redistribution between individuals who differ in their lifespans. We discuss aspects related to the objective function and argue that aversion to multiperiod inequality should be taken into account. Then, we study the properties of the social optimum both with full information and with asymmetric information. We highlight the role of aversion to multiperiod inequality and show that it has substantial consequences on the design of Social Security schemes. In particular, we show that for a low (resp. high) aversion to multiperiod inequality, a negative (resp. positive) implicit tax rate on continued activity is desirable.     

Business services,the new engine of French regional growth

This article analyses the evolution of employment in the French regions, putting the accent on business service firms. A ‘shift and share’ type of analysis shows that a primary decentralisation in tertiary activities seems to emerge in the 1990s, essentially pertaining to ancillary producer services. An explanatory analysis backs up the general validity of the regional economic base theory: the basic activities, to which business services can quite legitimately be attached, certainly play a leading long-term role on global employment dynamics. Finally it shows that over the past 20 years, the regional offer of services to businesses has been the major discriminating variable between regions, greatly influencing the evolution of basic employment and thus confirming the vital driving force of this sector in regional dynamics.     

Who is considered an ‘older worker'? Extending our conceptualisation of ‘older’ from an organisational decision maker perspective

A refinement of the construct of age, specifically ‘older’, is recognised as a critical measurement concern for experts in both ageing research and policy formation. In this context, we set out to both chronologically define an ‘older worker’ and to identify on what basis the age of ‘older’ is determined. In doing so, we draw on open‐ended survey data (collected in 2011) from a sample of 407 organisational decision makers across all industries in Ireland. Our focus was specifically on the perspective of organisational decision makers because these individuals will be instrumental in facing the challenges associated with workforce ageing. The results show that workers are considered as ‘older’ at a younger age than might be expected and that decision makers conceptualise workers as ‘older’ using various approaches in the organisational context. Our findings contribute to the literature in three ways: firstly, by providing an important empirically derived understanding of the term ‘older worker’; secondly, by empirically examining previously suggested ‘possible’ indicators of age; and thirdly, by demonstrating that these indicators are conceptually and empirically distinct, advancing theory on the concept of age in the workplace.     

Optimal production of transplant care services

Most organ transplants are from dead donors. National transplant organizations exhibit considerable differences in terms of their donor population rates. Spain's organization is by far the most efficient in this respect. We argue that much of the productivity advantage of Spain's transplant organization proceeds from an efficient organization of the production chain, from organ procurement to transplantation. Transplants from dead donors are analogous to a common resource for the transplant community. Their circulation through the national transplant organization creates public good externalities between the care units in charge of organ retrieval and those in charge of transplantation. A socially efficient production of transplant care services obtains through an optimal control, by the national transplant agency, of both the circulation and the production of transplants. In particular, transplant shortage makes the rotten kid theorem fail in this context. The analysis also produces a natural measure of public good externalities, evaluated from the standpoint of care units.     

‘Free actors’ and organizations: critical remarks about the new career literature,based on French insights

What is the reality of contemporary careers? Have individuals become masters of their professional destiny? While the ‘new career literature’ puts forward the figure of an individual free to invent his/her career (the ‘free actor model’), this article shows that the changes purported to affect careers are less radical than they seem. Despite a weakening of environments, discriminating career mechanisms are still imposed on cadres, at least in France. Because individuals do not always have the means or the will to escape those mechanisms, ‘external clues’ continue to mark careers more than the new career literature supposes. To account for the realities observed in France, this paper proposes a specific view on careers, which highlights why career rules still exist in the country.