Social identity salience: Effects on identity‐based brand choices of Hispanic consumers

The purpose of this study was to examine the combinatorial effects of enduring and momentary mechanisms of cultural identity salience on identity‐based apparel brand choices of three Hispanic acculturation segments (Hispanic‐dominant, mainstream‐dominant, and balanced‐bicultural). The hypotheses were empirically tested among Hispanic students at a midwestern university in the U.S. employing a two‐session online experiment. Results revealed that the influence of cultural primes (momentary salience of the cultural identity) on subsequent brand choices of Hispanic consumers is moderated by their bidimensional acculturation (enduring salience of the cultural identity). As posited, the current study found that the same cultural primes had differential effects among the three Hispanic acculturation segments, with the largest effect size among the balanced‐bicultural segment. Specifically, the results indicated that Hispanic‐dominant and mainstream‐dominant consumers were less responsive to cultural cues in the environment and were less likely to demonstrate significant preference shifts in response to cultural primes. However, balanced‐bicultural consumers demonstrated significant shifts in their attitudes and purchase intent for Hispanic and mainstream apparel brands when exposed to cultural primes, such that their brand choices assimilated toward the primed identity. Results are discussed in the context of social identity theory, the self‐stereotyping process, cultural frame shifting, and the bidimensional acculturation model. © 2010 Wiley Periodicals, Inc.     

Partisanship and the effectiveness of oversight

We examine the welfare effects of partisanship in a model of checks and balances. An executive makes a policy proposal and an overseer then decides whether or not to veto the executive's proposal. Both the executive and the overseer have private information as to the correct policy to pursue, and both are motivated by the desire to appear competent. A partisan overseer is one who, in addition to seeking to promote her own reputation, cares how her decision will impact the executive's reputation. Our main result is that partisanship can improve the efficacy of an oversight regime, as the distortions caused by a partisan overseer's desire to affect the executive's reputation can offset the distortions caused by her desire to enhance her own. Our results provide a new rationale for divided government, as partisan considerations are often necessary to prevent the overseer from rubber stamping all executive proposals.     

Dealing with Wicked Issues: Open Strategizing and the Camisea Case

The purpose of this article is to demonstrate, based on an extensive study of the Shell-led Camisea gas project in Peru, how what we believe to be a new approach to dealing with stakeholders, focusing on sense-making and combining industry dynamics and stakeholder empowerment, was developed. The project’s success was measured by the fact that, unlike similar projects around the world, it did not meet with major opposition during its 4-year life span. Those involved in the Camisea project succeeded in creating an open approach to building stakeholder relationships, allowing them to navigate through a number of diverse and challenging socio-political and ecological issues. An integral part of Shell’s approach was acting upon its commitment to high standards of operation and values. The insights from this case clearly indicate that stakeholder management and theorizing can profit from a less controlled, open and sense-making oriented strategizing with stakeholders.     

The co-movement of stock markets in East Asia: Did the 1997–1998 Asian financial crisis really strengthen stock market integration?

This paper examines the integration and causality of interdependencies among seven major East Asian stock exchanges before, during, and after the 1997–1998 Asian financial crisis. For this purpose, we use daily stock market data from July 1, 1992 to June 30, 2003 in local currency as well as US dollar terms. The data reveal that the relationships among East Asian stock markets are time varying. While stock market interactions are limited before the Asian financial crisis, we find that Hong Kong and Singapore respond significantly to shocks in most other East Asian markets, including Shanghai and Shenzhen, during this crisis. After the crisis, shocks in Hong Kong and Singapore largely affect other East Asian stock markets, except for those in Mainland China. Finally, considering the role of the USA shows that it strongly influences stock returns in East Asia – except for Mainland China – in all periods, while the reverse does not hold true.     

An oligopoly model of ocean liner shipping

In this paper I develop a simultaneous equations oligopoly model of the regulated international ocean liner shipping industry. The firms act as a cartel to determine price jointly and then set their own quality levels to maximize individual profits. The cartel does not attain monopoly profits, because each conference member myopically determines quality without regard for overall cartel profits. The results indicate that an increase in the number of firms in the cartel will increase both cartel price and quality level. An increase in price will also lead to an increase in quality level.I would like to thank Professors Alamarin Phillips, Robert Summers, and Bruce Allen for their helpful comments on earlier research for my dissertation in the Economics Department of the University of Pennsylvania on which this work is based. I am especially grateful to Professor Lawrence J. White for his encouragement and valuable suggestions at various stages of my work.     

Housing-Price Cycles and Prepayment Rates of U.S. Mortgage Pools

Empirical mortgage prepayment models generally have trouble explaining differences in mortgage-prepayment speeds among pools with similar interest rates on the underlying mortgages. In this article, we model some of the sources of termination heterogeneity across mortgage pools, particularly the role of regional variations in housing prices in generating atypical prepayment speeds. Using a sample of Freddie Mac mortgage pools from 1991 to 1998, we compare two classes of empirical models: a rational option-pricing model using a backward-solving pricing algorithm and an empirical hazard model. In both empirical estimation strategies, we find evidence that differences in house-price dynamics across regions are an important source of between-pool heterogeneity. This finding is then shown to be robust to alternative ways of parameterizing pool heterogeneity in mortgage termination models.     

CEO Share Ownership and Firm Value

This study examines the effect of CEO ownership on firm performance. The findings suggest that CEO ownership and firm performance are jointly determined. Firm performance affects CEO ownership positively and in turn, CEO ownership has a positive effect on firm performance. Our results also show that firms managed by founder CEOs have better performance and that the CEO duality structure is beneficial in a turbulent environment.     

What Belongs in a Constitution?

The essay argues that the content of constitutions should derive from its political functions: granting stability and legitimacy to government. There are three main candidates for inclusion in constitutions: regime arrangements, human rights, and general credo. All constitutions must include institutional arrangements. The level of detail and entrenchment may vary. There are important reasons for including Bills of rights in constitutions, but attention should be given to their mode of entrenchment and enforcement. Credos should only be included in constitutions if they are widely shared. In principles, constitutions should specify their modes of amendment and enforcement. If a society cannot have a widely-agreed constitution, it may be better to defer its enactment until such broad agreement is possible.     

The Effects of Alternative Methods of Crow Benefit Payment on Economic Rents of Farm Input Suppliers in Western Canada

This paper uses a multi-market partial equilibrium model to assess the impact of selected alternative methods of payment of the Crow Benefit on the economic welfare of farm input suppliers for the feed grain sector in western Canada. the model is calibrated using data representative of the period from 1986 to 1988. Inputs are grouped into categories of land, labor, machinery and buildings, and other purchased inputs. Impacts of alternative policy regimes are found to differ substantially by the characteristics of the particular policy proposal and also by the nature of the input in question. Input suppliers would be worse off under the method of payment embodied in the so-called Gilson, 50:50 and Agricultural Diversification Alliance proposals, but would be better off under the Grain Trasportation Refund plan. Adverse impacts on landowne welfare, measured as percentage change in economic rents received, would be larger than the effects on other input suppliers, in some cases exceeding 10% of the rents received under the status quo. L'étude utilise un modèle multi-marchéàéquilibre partiel pour évaluer les incidences de diverses méthodes de paiement du montant compensatoire du Nid-de-Corbeau sur la situation économique des agrofournisseurs du secteur des céréles de provendes dans l'ouest du Canads. Le modèle est étalonné au moyen de données représentatives d'une période allant de 1986 à 1988. Les intrants sont groupés en catégories: fonds de terre, main-d'oeuvre, machinerie et bâtiments et autres fournitures achetées. Les effets des divers régimes diffèrent sensiblement par les caractères du projet do politique et aussi par la nature des intrants en question. La situation des fournisseurs serait empirée si l'on emploie la méthode de paicment comprise dans les programmes Gilson, 50:50 et Agricultural Diversification Alliance, mais elle serait meilleure avec le plan de remboursement sur le transport du grain. Les effets négatifs sur la situation des propriétaires de terre, mesurés par le changement en pourcentage du loiyer économique reçu, étaient plus importants que les effets sur les autres catégories d'agrofournisseurs, dépassant parfois 10% du loye reçu dans le régime actuel.