Re-examining the economic determinants of alcohol consumption in Canada: controlling for the presence of common correlated effects

Alcoholic beverages represent both an important source of revenue and a driver of expenditure for provincial governments in Canada. As a result, the pricing of alcoholic beverages has substantial public policy implications. In this context, we re-examine existing work estimating the demand for three classes of alcoholic beverage (beer, wine, and spirits) by controlling for common correlated effects. The results reveal that any conclusions regarding the government’s ability to influence alcohol consumption is sensitive to the assumption that the relationship between the demand for alcoholic beverages and economic variables is identical across provinces.     

Who should own it? An agency‐based explanation for multi‐outlet ownership and co‐location in plural form franchising

Plural forms exist when managers use two owners to perform one activity. Franchising is a plural form explained by agency theory, however, the theory is unable to explain two franchisor actions: 1) allowing franchisees to own multiple outlets and 2) co‐locating company‐owned and franchised outlets. We use research that describes a symbiosis between company‐owned and franchised outlets to extend agency theory and explain these actions. Our investigation of ownership patterns among 4,339 outlets of 16 plural form franchisors is consistent with our theory that multi‐outlet franchising is cost efficient and that co‐location occurs when franchisors fill market gaps left by franchisees. Copyright © 2011 John Wiley & Sons, Ltd.     

Country of origin labeling for complex supply chains: the case for labeling the location of different supply chain links

We investigate the value of a country of origin label (COOL) that separately identifies the geographic location of different stages in a food product's supply chain. We estimate the willingness‐to‐pay (WTP) of U.S. consumers for a packaged cereal product where the key grain ingredient may be grown in one country and processed in a second country (multicountry supply chain) and compare it to equivalent products that have both stages located in a single country. We find consumer WTP for products with single‐country and multicountry supply chains are statistically different, meaning that simplifying a multicountry label by listing only the country where the ingredients are grown or only the country where the ingredients are processed can result in different consumer values. We also find that for countries with a poor quality reputation, consumers respond more negatively when that country has the “last touch” than when that country's involvement is limited to upstream supply chain links.     

Technical change,technical efficiency,and input usage in Taiwanese agricultural growth

We analyse the increase in sales of Pick 3 and Pick 4 daily numbers lottery games and other Ohio Lottery games after Ohio introduced midday drawings for the Pick 3 and Pick 4 games in August 1999. The midday drawings increased Pick 3 sales by 5%, Pick 4 sales by 12%, and total lottery sales by 2% based on our analysis of a 36-month panel dataset of Ohio lottery sales by zip code. Midday drawings raise more revenue from the strongly regressive daily numbers games. However, the introduction of midday drawings does not change the negative income elasticities of demand for numbers games in an economically meaningful manner.     

The Economic Value of Water Quality

Stated preference values for water quality ratings based on the US Environmental Protection Agency National Water Quality Inventory ratings provide an operational basis for benefit assessment. Iterative choice survey results for a very large, nationally representative, Web-based panel imply an average valuation of $32 for each percent increase in lakes and rivers in the region for which water quality is rated “Good.” Valuations are skewed, with the mean value more than double the median. Sources of heterogeneity in benefit values include differences in responses to average water quality information and the base level of water quality. Conjoint estimates are somewhat lower than the iterative choice values. The annual economic value of the decline in inland US water quality from 1994 to 2000 is over $20 billion.      

Consumer information on Distributor and Manufacturer Brands of food

Consumer information affirms that distributor brands of food are less expensive than corresponding manufacturer brands¹ and that these brands are equal in quality [2, p. 8]. The price difference between these two types of brands thus represents a real gain to the consumer purchasing distributor brands rather than just a case of paying less for lower quality products. Furthermore, one source has estimated that ten per cent of the grocery bill can be saved through purchasing distributor brands [6]. The credibility of this information is open to question however, as few statements concerning the price and quality of these types of brands have been carefully documented in Canada. In the light of the limited empirical support and the substantial consumer benefit involved, the purpose of this study is to test the reported relation between the price and quality of distributor and manufacturer brands. Establishing a working definition for quality is a key problem encountered in price-quality analysis. Food quality is multidimensional and its various dimensions may be classified into two broad categories: subjective or sensory attributes such as taste, aroma, appearance; and objective attributes located below the threshold of perception such as nutrients and freedom from harmful micro-organisms. Because the sensory attributes are more amenable to measurement by non-food scientists and to variation in hidden attributes being controlled by law, this paper focuses on sensory quality. The quality and preference concepts overlap to some extent, as the subjective attributes of food are common to both quality and preference. To ensure that “sensory quality” is well distinguished from overall quality, “sensory quality” is referred to as “sensory preference”. Having gone some distance towards establishing an operational definition of quality, the principal objectives are: Summary The findings, though tentative and focused on the sensory component of quality, can scarcely be regarded as providing empirical support for the price-quality information referred to earlier. Distributor brands were notably less expensive for three-quarters of the products surveyed. As well, the manufacturer brand was rated significantly higher than at least one distributor brand for four of the ten products subject to sensory evaluation. The results therefore suggest that there is a very general tendency for distributor brands to be priced lower than manufacturer brands and to be of equivalent quality.     

Renminbi Internationalization： Progress, Prospect and Comparison

Using principal component analyses, this paper constructs two internationalization indices for the renminbi (RMB) and 32 other major currencies. We find that the RMB's currency internationalization degree index (CIDI) is still low, and far behind the 4 most important international currencies. In 2009, it was ranked 18th among all important international currencies. However, in terms of the currency internationalization prospect index (CIPI), the RMB has remained the world's fifth highest since 2006. Although it is still far behind the US dollar and the euro, surpassing the ranking of the yen and the pound is possible in the near future. The dramatic difference in the ranking between the CIDI and the CIPI is a result of China's tight capital account control, the usage continuity of international currency due to network externalities, and the narrow foreign exchange and imperfect financial markets. Hence, to a large degree, the RMB's potential as an international currency depends on China's capital account liberalization.     

Intrapreneurial intentions versus entrepreneurial intentions: distinct constructs with different antecedents

We posit that entrepreneurship and intrapreneurship are distinct entrepreneurial behaviors that differ in terms of their salient outcomes for the individual. Since individuals are likely to differ in their attitudes to these salient outcomes, and in their entrepreneurial self-efficacy, we hypothesize that a different strength of intention for entrepreneurship versus intrapreneurship will be due to individual differences in self-efficacy and in their attitudes to the outcomes from entrepreneurial, as compared to intrapreneurial, behavior. We find that while self-efficacy is significantly related to both entrepreneurial and intrapreneurial intentions, attitudes to income, ownership, and autonomy relate only to entrepreneurial intentions, while attitude to risk relates only to intrapreneurial intentions.     

The effects of role strain on the consumer decision process for groceries in single-parent households

Single-parent families are becoming a larger part of American society. But what is known about their decision-making processes? Role strain is of particular interest when studying single parents because of their need to serve multiple family roles otherwise carried out by dual-parent families. In this study, the consumer decision process for single parents is empirically examined in the context of grocery shopping. Role strain was found to have a significant effect on problem recognition style and reactive shopping behaviors. Advertising positively influenced proactive shopping behaviors and had a negative relationship with reactive shopping behaviors. Implications for food retailers are provided.