Non-monetary sales promotion effects on credit cards

This study fills an important gap in the literature by exploring the effects of the attractiveness of a non-monetary promotion with premiums on credit card purchase intention and brand selection. Two experimental studies involving 386 undergraduates were done. Non-monetary sales promotions with attractive premiums have a positive influence on the credit card purchase intention, compared to non-monetary sales promotions with unattractive premiums. On brand choice, non-monetary sales promotions with attractive premiums increase the likelihood of brand choice promoted. Premiums attractiveness is an important variable in the evaluation of a promotional offer that aims to increase the intention purchase and motivate the selection of brand. This study helps managers in choosing the types of premiums that are valued by consumers in a promotion. Most of the studies explore monetary promotions, while this study contributes to literature by exploring the gap about the effects of non-monetary sales promotions on purchase intention and brand selection, especially in the bank services environment.     

Influence of perceived risk on entrepreneurial desirability and feasibility: multidimensional approach for nascent entrepreneurs

This study examines the influence of perceived risk on entrepreneurial desirability and feasibility as determining factors in the intention to start a self-owned business. Specifically, a multidimensional approach is taken to examine the different types of risks associated with entrepreneurship: economic, social, time, health and personal risks. The results obtained from a sample of 376 new entrepreneurs in Mexico confirm the fact that the perceived desirability and feasibility have a significant and positive effect on the intentions to start their own company. On one hand, the empirical evidence obtained shows a heterogenic effect of the risk dimensions associated with entrepreneurship on the perceived desirability and feasibility in their behaviour. Therefore, it was found that the economic risk associated with entrepreneurship has a negative effect on the feasibility to start a business, but does not significantly influence the desirability of that behaviour. On the other hand, a significant effect from the risk related to health is not seen on desirability and feasibility, but the negative influence of personal risk is empirically supported for both variables. Finally, the results obtained related to social and time risk are contradictory. Social risk negatively influences entrepreneurship desirability, but a positive effect is observed on the feasibility to create a business. For its part, the empirical evidence obtained does not support any effect of the time risk on the perceived feasibility of starting a business, but there is a positive on entrepreneurship desirability. These results, which are contrary to the traditional concept of risk as a barrier to entrepreneurship, are justified by the vocational nature of this behaviour and by the social sacrifices that are sometimes necessary to be able to make a business work.     

An Exploratory Study on Nonlinear Causality Among the MILA Markets

According to conventional portfolio theory, an increase in the interconnectedness of international financial markets may reduce the potential for constructing diversified portfolios. This article explores the implications of the creation of the Latin American Integrated Market (MILA)¹ over the dependence structure of its members using correlation and cointegration analysis as well as linear and nonlinear Granger causality tests. The creation of MILA aimed to enhance the integration process that Latin American financial markets “naturally” present while still providing diversification opportunities to investors. The results of our empirical analysis suggest that such objective is being achieved. Evidence of a rise in cross-country linear correlations and their linear causal relationship supports the idea of an increasing financial integration process in the region, while the absence of cointegration and the weakening of the nonlinear causal relationship favors the creation of diversified regional portfolios. These findings provide valuable insights for investment portfolio designers, regulators, and supervisors.     

The impact of electronic commerce on small and midsized spanish companies

Electronic commerce (EC) is not new for some European Union countries, but in others, such as Spain, it is only at the developmental stage. Now that Spain has joined the third phase of the economic and monetary union, Spanish companies' internationalization and the progressive change in the Spanish consumers' buying habits are determining the search for new business strategies. Starting with an analysis of the Spanish business environment, followed by an internal scanning of small and midsized Spanish companies, this paper will analyze the viability of EC as a new business strategy.     

Existence of Sparsely Supported Correlated Equilibria

We show that every N-player K ₁ × ... × K _N game possesses a correlated equilibrium with at least zero entries. In particular, the largest N-player K × ... × K games with unique fully supported correlated equilibrium are two-player games. We thank an anonymous referee for most useful comments. The first author acknowledges financial support from Spanish Ministry of Science and Technology, grant SEJ2004-03619, and in form of a Ramón y Cajal fellowship. The second author acknowledges support by the PASCAL Network of Excellence under EC grant no.506778, as well as from Spanish Ministry of Science and Technology and FEDER, grant BMF2003-03324. Both authors also acknowledge financial support from BBVA grant “Aprender a jugar.”     

Managers and Wage Policies

Do individual top managers matter for wages and wage policies? Are there general differences in “style” among managers with respect to worker compensation? To shed light on these questions, we exploit a large panel dataset from Portugal that allows us to match workers, firms, and managers, and follow the movements of the latter across different firms over time. While accounting for the effect of worker and firm heterogeneity, we estimate the role of top manager fixed effects in determining wages and wage policies. The estimates suggest that (i) top managers have a significant influence on wages and wage policies; (ii) there exists different managerial “styles”; and (iii) managers’ (observable) attributes matter for worker compensation.