Is a $200 Nordstrom Gift Card Worth More or Less Than a $200 Gap Gift Card? The Asymmetric Valuations of Luxury Gift Cards

Gift cards account for a $200 billion market in the US, yet little is known about consumers’ preferences and valuations of different gift cards. We examine how average US consumers feel about exchanging luxury brand gift cards (LGCs) versus non-luxury brand gift cards (NLGCs). Using secondary data analyses, surveys, and experiments, we demonstrate two asymmetries: between valuations of LGCs versus NLGCs and between valuations of gift cards by givers versus recipients. We show that LGCs are valued less than NLGCs with identical price tags. LGCs are more likely to be swapped or sold. Resellers demand and buyers pay lower prices for LGCs. These effects are mediated by the perceived utility of the gift cards as gifts and moderated by a person’s role in the gifting process. Gift givers value and prefer to give LGCs more, whereas recipients prefer and value NLGCs more.     

A globally flexible,quadratic almost ideal demand system: an application to demand for meats and fish in Taiwan

A new demand system, called a globally flexible, quadratic almost ideal demand system (GF–QUAIDS), integrates both the quadratic Engel curve and the Fourier series. This novel GF–QUAIDS model is applied to study the demand for meats and fish in Taiwan. Empirical results show that the GF–QUAIDS fits the data well and that, by using the likelihood ratio test, its nested models are rejected, including the locally flexible functional form and the linear Engel curve. Nevertheless, other empirical model-selection measures indicate that the GF–QUAIDS can be as good as its famous nested models such as the AIDS, QUAIDS and GF–AIDS.     

The determinants of trade credit use: the case of the Tanzanian rice market

Most small businesses in the developing economies suffer from a lack of access to formal external finance. One important alternative source of finance for these entrepreneurs is trade credit. Applying a unique data-set containing data on specific trade relations between rice wholesalers and rice retailers in Tanzania, we analyse the determinants of trade credit demand and supply in this market, using a simultaneous equation modelling approach. The analysis shows that while the demand for trade credit is primarily determined by the extent to which retailers need external funds, supply is mainly driven by wholesalers’ incentives to attract and keep clients. Moreover, wholesalers’ willingness to provide credit increases if they have better information about the possibility that the customer will fail to repay the credit.     

Orthodox Core–Heterodox Periphery? Contrasting Citation Networks of Economics Departments in Vienna

ABSTRACT

The notion of an ‘orthodox core–heterodox periphery’ structure and the extent of interdisciplinary links have been widely discussed, and partially investigated bibliometrically, within economic discourse. We extend this research by applying tools from social network analysis to citation data of three economics departments located in Vienna, two mainstream and one non-mainstream, to assess their relative citation patterns. We show that both mainstream economics departments follow the asserted core–periphery pattern and have a mono-disciplinary research focus, while the citation network of the non-mainstream department has a polycentric structure and is both more heterodox and interdisciplinary. These findings suggest that discussions about the future of heterodox economics should pay more attention to the organizational level and seek allies from other disciplines.     

Social marketing on AIDS: using Transtheoretical model to understand current condom usage among commercial drivers in Accra,Ghana

• This is an exploratory research to utilise the Transtheoretical model to assess condom usage intentions among commercial drivers in Ghana. A convenience‐based non‐probability sampling method was employed, and a face‐to‐face questionnaire was administered on 132 commercial drivers in Accra. The analysis of variance and one sample t‐test statistical method was employed to establish relationship between variables based on the Transtheoretical model. The result reveals that over 71.9% of commercial drivers are at precontemplation, contemplation and preparation stages. This means that most commercial drivers interviewed have not yet taken action to use condoms to protect themselves against HIV/AIDS. The findings of the study constitute a series of marketing ideas, useful in decision making with social marketing organisations.

Copyright © 2013 John Wiley & Sons, Ltd.     

A metafrontier directional distance function approach to assessing eco-efficiency

This paper uses directional distance functions to extend the non-parametric metafrontier approach to efficiency measurement proposed by O’Donnell et al. (Empir Econ 34:231–255, 2008) to the assessment of technological differences in eco-efficiency between groups of producers. Furthermore, eco-efficiency is assessed at the level of specific environmental pressure management. This methodology is applied to a sample of Spanish olive producers that belong to both traditional mountain and traditional plain growing systems. We find great potential for both olive growing systems to reduce environmental pressures. In terms of pressures on natural resources, the most eco-efficient technology is the traditional plain system, while the traditional mountain system is the most eco-efficient when considering pressures on biodiversity. These results might help policymakers design strategies to improve the performance of olive growing and meet the demands of society regarding the economic and ecological functions of this farming activity.     

Have Casinos Contributed to Rising Bankruptcy Rates?

This paper examines the relationship between casino gambling and bankruptcy rates in U.S. counties using a panel of U.S. county-level data from 1990 through 2005. We contribute to the literature in several ways, perhaps most notably by examining the possibility that the effect of a casino on bankruptcy may differ over the casino’s lifespan. Results confirm this possibility, indicating that the impact of casinos on bankruptcy follows a “U-shaped” curve over the life of the casino. More specifically, regression analysis indicates the existence of a casino in a county increases the bankruptcy rate by more than 9% in the first year of operation. The percentage of additional bankruptcies then decreases through the third year after the casino opens. Bankruptcy rates in casino counties then slightly fall below that of non-casino counties during the fourth through seventh years after opening, increasing once again in the eighth year and thereafter. This cycle corresponds closely to the 6 year statute of limitations period applicable to Chapter 7 bankruptcies.     

A dynamic theory of multiple borrowing

Multiple borrowing—when borrower obtains overlapping loans from multiple lenders—is a common phenomenon in many credit markets. We build a tractable, dynamic model of multiple borrowing and show that, because overlapping creditors can impose default externalities on each other, expanding financial access by introducing more lenders can backfire. Capital allocation is distorted away from the most productive uses. Entrepreneurs choose inefficient endeavors with low returns to scale. These problems are exacerbated when investments become more pledgeable or when borrowers have access to more lenders, explaining why increased access to finance does not always improve outcomes.     

Strategic brand management for higher education institutions with graduate degree programs: empirical insights from the higher education marketing mix

ABSTRACT

Intense competition for student enrollment has created a strong need for higher education institutions, especially those that offer graduate degree programs, to differentiate themselves. This article introduces the concept of strategic brand management as an avenue for higher education differentiation and discusses how higher education institutions with graduate degree programs can strategically manage their brands (i.e. corporate and product) through the higher education marketing mix (i.e. prominence, prospectus, program, price, people, premium, and promotion). Using a closed-ended survey and partial least squares structural equation modeling of a sample of students enrolled in a graduate degree program (e.g. MBA), the study finds that the utilitarian elements (i.e. prominence, prospectus, program, and price) of the higher education marketing mix have a positive direct impact on the product brand (e.g. MBA brand) and an indirect impact on the corporate brand (e.g. university brand) of these types of higher education institutions. However, hedonic elements (i.e. people, premium, and promotion) of the higher education marketing mix do not produce any significant impact on either the corporate or product brands of these institutions. Implications from these findings to theory, practice, and future research avenues conclude.