On tax competition, public goods provision and jurisdictions' size

In this paper, we analyze competition among jurisdictions to attract foreign capital through low taxes and public inputs that enhance firms' productivity. The competing jurisdictions are different in size and mobility of capital is costly. We find that for moderate mobility costs, small economies can attract foreign capital by supplying higher levels of public goods than larger jurisdictions, without practicing tax undercutting. The classical result that small jurisdictions are attractive because they engage in tax dumping is recovered only for high mobility costs of capital.     

How service seasons the experience: Measuring hospitality servicescapes

Hospitality servicescapes incorporate physical complexity and social interaction. These two features are often measured separately but rarely measured together in attempts to uncover consumer perceptions within these settings. A psychometric scale developed within the restaurant setting shows a five-dimensional structure for capturing the personality of a hospitality setting. In contrast to attribute-based measures, this measurement approach highlights the importance of service interactions in shaping consumer perceptions. The items proposed account for the dynamism of the setting including the heterogeneity possible due to high service levels. The scale indicates how certain consumer perceptions, as outlined in the dimensions of the proposed scale, are likely to influence consumer outcome behaviors. Managerially, the scale provides a more precise understanding of consumer perceptions within restaurants. As such, the scale can serve as an interesting positioning tool as well a method to evaluate consumer perceptions of restaurants.     

French economic cycles: a wavelet analysis of French retrospective GNP series

Although 50 years of scientific work has been invested in building retrospective economic time series, their reliability is still debated, a good example being the two competing nineteenth century French GNP series. Instead of trying to bring up some new details to gauge their respective accuracy, we propose a different route, i.e. testing the intrinsic features of these two series, in absolute terms first, then by benchmarking them to a non-retrospective time series. In order to do that, we rely on new mathematical tools—wavelet spectrum analysis—developed in signal processing. This leads to a new approach, which separates the accuracy of a series between amplitude and time variations, and brings nuanced conclusions as to which of the two series tested is the best: indeed, since a trade-off is almost inescapable between the two criterions of accuracy, the statistical quality of one retrospective time series tends to linger either on one side (amplitude level) or the other (time variations). Our study also shows that variance distribution along the time axis is a good proxy for complex retrospective series accuracy.

An economic assessment of the Common Market Organization for bananas in the European Union

The main objective of this paper is to provide some estimates of how the world banana market has been affected by the Common Market Organization (CMO) for bananas established in the European Union (EU) on 1 July 1993, and modified in April 1994. We quantify the effects of the new EU regulation on world and EU prices, on the structure of EU imports from Latin American countries, African, Caribbean and Pacific (ACP) countries and EU regional suppliers, on the pattern of consumption in the various EU member states, and on consumers' and producers' welfare using a static partial equilibrium model of the world banana market. Simulation results suggest that the two key variables in determining the effects of the CMO are the size of the tariff quota on dollar and non-traditional ACP bananas and the capacity of ACP countries to exhaust their ACP contingent share.     

A method for detecting nonlinear effects in cross-sectional survey data

This paper describes a little-used method which allows marketing research to move beyond estimating linear relations in exploratory research. Initially developed by Fisher and extended by the author, this decomposition method is systematic, flexible and answers directly questions relating to the shape of the relationship among a hypothesized set of variables. Two examples are provided to illustrate the usefulness of the method to marketing researchers.     

General equilibrium pricing of nonredundant forward contracts

We derive the general equilibrium of a dynamic financial market in which the investors' opportunity set includes nonredundant forward contracts. We show that Breeden's (1979) consumption‐based CAPM equation for forward contracts contains an extra term relative to that for cash assets. We name this term a strategy risk premium. It compensates investors for the (systematic) risk that stems from their very portfolio strategies when the latter involve nonredundant forward contracts. We also show that Merton's (1973) multibeta intertemporal CAPM must be amended for forward contracts to exhibit adjusted risk premia for the market portfolio and all relevant state variables, as opposed to the usual risk premia for cash assets. Our results are shown not to depend on the usual cash‐and‐carry relationship, which, in general, does not hold. We, nevertheless, provide a well‐known special case where it does hold, albeit not grounded on the usual no‐arbitrage argument. © 2003 Wiley Periodicals, Inc. Jrl Fut Mark 23:817–840, 2003     

Connecting the dots: how personal need for structure produces false consumer pattern perceptions

The human tendency to recognize patterns even when none exist is shown to have applications in consumer behavior. The current research demonstrates that as one’s personal need for structure (PNS) increases (i.e., requiring predictability and disfavoring uncertainty), false consumer pattern perceptions emerge. Construal level moderates this relationship such that as abstract mindsets (high construal) seek out underlying explanations and enhance, concrete mindsets (low construal) evaluate consumer-related stimuli in terms of its contextual elements and therefore attenuate the effect. Types of consumer patterns are characterized by false expectations about the performance of a cellular phone (study 1), the association of human characteristics toward personal computers (study 2), and the development of beliefs in corporate conspiracy theories (study 3). This research has implications for practitioners and academics as it expands on the literature related to false pattern perceptions by investigating it through the lens of consumer decision-making.     

New developments in global consumer behavior and marketing strategy: Introduction to the special issue

This special issue of the Journal of Business Research features ten articles selected from the papers presented during the seventh meeting of the Royal Bank International Research Seminar which took place in Montreal (Canada), September 22–24, 2011. The papers cover topics relating to new developments in online research, acculturation/socialization research, research methodology, and marketing strategy.     

Understanding Cosmopolitanism and Brand Origin Recognition Accuracy: The Moderating Effect of Need for Cognition

This paper investigates whether cosmopolitan individuals have a greater knowledge of brand origins compared to non-cosmopolitans. The moderating effect of need for cognition is tested. Additionally, this work tests whether the level of confidence in assigning a country of origin to a brand affects brand attitude. The results show that cosmopolitan individuals have significantly higher brand origin recognition accuracy scores than non-cosmopolitans. Second, an interaction is found between cosmopolitanism and need for cognition to impact the brand origin recognition accuracy. Third, when individuals are more confident about the origin of a brand, brand attitude increases.