Internet Car Retailing

We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low-price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased.     

“Burden of Debt” in HIPC Countries in the Light of Current Account Statistics

For many years, debt relief has been a prominent theme in public debate. Supporters of debt relief argue that debt service drains the resources of needy countries – resources which could be employed in such important areas as infrastructure, education and medical treatment. The question, however, whether foreign debt does, indeed, lead to a draining of resources is hardly ever addressed.     

Die Macht der Meinungsmacher: Ratingagenturen und staatliche Verschuldungsdynamiken

Die Finanzm?rkte reagieren in der gegenw?rtigen Staatsschuldenkrise offensichtlich auf Meinungs?u?erungen der marktbeherrschenden Ratingagenturen — selbst wenn diese in scheinbarem Widerspruch zur vorherigen Bewertung ?konomischer Fundamentaldaten stehen. Das führt dazu, dass private Interessen staatliche Verschuldungsdynamiken beeinfl ussen k?nnen und für sie damit politischer Handlungsspielraum entsteht.     

Ethical reasoning in business‐to‐business negotiations: evidence from relationships in the chemical industry in Germany

This article explores managers’ ethical reasoning for behaviors in price negotiations using evidence from 15 in‐depth interviews conducted with sales and purchasing representatives in the chemical industry in Germany. Applying transaction cost economics, we find that negotiators in commoditized market‐like exchanges either refer to deontological norms such as not to lie, or they neglect a role for ethics, arguing that distributive negotiation is per se opportunistic. In contrast, exchanges of products with higher asset specificity lead to stronger informational integration which is supported with teleological justifications. Some negotiators use teleological justification to build business on trust rather than on economic safeguards as their firm norms would require. For negotiators, our results suggest considering institutional context and adjusting ethical reasoning to the negotiation situation. Firms need to recognize and find ways to address the potential conflicts of their internal norms with their frontline managers’ attempts to act in the firms’ best economic and ethical interests.     

Why is Austria’s Pension System So Much Better Than Germany’s?

The pension systems in both Germany and Austria have undergone substantial reforms, though only one of the countries appears to have had success. Average earners in Austria will receive gross pensions equivalent to 78.1% of their average earnings, whereas in Germany they will receive just 37.5%. The authors argue that Germany has been left with a system that has abandoned the goal of protecting people's standard of living.     

Guilt Appeals and Prosocial Behavior: An Experimental Analysis of the Effects of Anticipatory Versus Reactive Guilt Appeals on the Effectiveness of Blood Donor Appeals

This study investigates the effectiveness of guilt-arousing communication in promoting prosocial behavior. By analyzing the distinct effects of anticipatory versus reactive guilt appeals, we contribute to the discussion of guilt appeals as drivers of prosocial behavior, especially blood donation. Research on persuasive communication provides the theoretical basis of our study and we validate our hypotheses by means of two 2?×?2 factorial between-subjects designs. We find that anticipatory rather than reactive guilt appeals are more effective in generating prosocial action tendencies. Compared to noninformational reference group influences, messages endorsed by members of informational reference groups yielded more favorable attitudinal responses. Besides their significant main effect, two-sided messages reinforce the favorable impact of anticipatory guilt appeals. The study concludes with practical implications for nonprofit organizations and public blood donor services as well as avenues for future research.