PRODUCT MARKET STRUCTURE,CAPITAL INTENSITY,AND SYSTEMATIC RISK: EMPIRICAL RESULTS FROM THE THEORY OF THE FIRM

Product market concepts from industrial organization economics are integrated with financial valuation models of the firm to investigate relationships among systematic risk, capital intensity, and product market power. The theory of the firm facing uncertain input and output prices is extended to provide empirical models. Empirical results coincide with hypotheses derived from the theoretical model and pose questions about traditional single period hypotheses found in the finance literature.     

CAPTIVE FINANCE SUBSIDIARIES: OVERVIEW AND SYNTHESIS

A captive finance company is a wholly owned subsidiary whose primary business is to finance the sales of the parent's products and services. Despite the continued growth and long history of captive finance companies, the issue of the economic impact of forming a captive remains controversial. Some view captive finance subsidiaries as unnecessary structures that may actually reduce the value of the firm. Others hold that captives can produce benefits that will increase firm value. The primary purpose of this paper is to provide an overview of the finance academic literature and to suggest direction for future research.     

The econometrics of labor supply on convex budget sets

A method to account for a convex tax system arising from progressive taxation is given for econometric estimation of labor supply models.     

The Neoclassical Model Enriched by the Structure of Control:

A bstract Traditional neoclassical theory treats the economic sphere as if it can be detached from its surrounding social and political environment. It assumes connections between the social/political spheres and the economic sphere are weak, and no change of significance occurs in the social and political environment during the period considered Social and political conditions are treated as "given" and, more often than not, the conditions of this given environment are neither specified nor studied A broader economics is needed
The Virginia School has represented a connection between political control and distributive outcomes with its rent-seeking analysis The flaw in their argument, that exposes their ideological bent, is their failure to extend the analysis to the distributive impact of control in the social sphere. This piece is an attempt to make that extension, and to demonstrate that a specific historical case, women s experience in World War II , cannot be fully understood without bringing that social dimension into the analysis     

Marketing Hype: A New Perspective for New Product Research and Introduction

Marketing research procedures typically used to support new product development activities often emphasize the collection of data from potential customers, even when the product success depends on the decisions of a number of key stakeholders such as distributors, media, etc. Consequently, most conventional product introduction efforts focus on a target customer segment and ignore the needs of other stakeholders. These narrowly concentrated research efforts can lead to unfounded expectations regarding the product performance. Similarly, the lopsided focus on consumers can lead to reduced marketing effectiveness. Jerry Wind and Vijay Mahajan argue for the recognition of the process of "marketing hype," a set of prelaunch activities leading to the creation of a supportive market environment. This can lead to the creation of broader strategies that focus on the key stakeholders as subjects for new product research, and targets for the introductory marketing programs. This could lead to a richer understanding of the intergroup influences on the adoption of the new product and increase the chances of a successful new product launch.