Consequences of increasing scarcity on affluent countries

A theory of continuous structural changes in countries and a theory of discontinuous structural changes are used to predict the consequences of increasing scarcity on countries with some affluence. The prognosis is disheartening. According to the theory of continuous change, increasing scarcity will directly or indirectly increase the inequality, centralization, disintegration, disturbances, repression, and both national and international conflict and will directly or indirectly decrease socioeconomic development, legitimacy, and democracy. These changes will be unpopular and create pressures for discontinuous change to prevent them. Furthermore, increasing scarcity will increase the desire for structural change and weaken the regime's capacity to manage the situation. Thus the pressure for structural change will be strong. Scarcity also interferes with the peaceful restructuring of democracies in their efforts to cope with the crisis. When these theories are used in predicting the future of modern countries under conditions of prolonged scarcity, they suggest that elitist democracies and elitist nondemocracies are likely to be restructured into egalitarian nondemocracies. Egalitarian democracies will survive as such if they are blessed with exceptional leadership. Otherwise they also might be restructured in the direction of egalitarian nondemocracy.     

Obesity and compensatory consumption: Evidence from jewelry shopping

This article examines the link between obesity and compensatory consumption in the context of jewelry shopping. Study 1 finds that participants with higher body mass indices are willing to pay more for a jewelry item. Study 2 generalizes this finding by documenting that jewelry store sales are higher in places with greater obesity rates. Using Google Trends data, Study 3 shows that the search interest for jewelry stores increases with the obesity rate and that this relationship is mediated by people's dissatisfaction with their current weight as revealed by their search activity. Finally, supporting the self-discrepancy account, Study 4 shows that the use of self-related and discrepancy words together in jewelry-related tweets is more pronounced in places with greater obesity rates. These findings collectively help enhance the field's understanding of the consumption behavior of people who are part of a large stigmatized group.     

Less speed more haste: The effect of crisis response speed and information strategy on the consumer−brand relationship

This paper investigates the relationship between firm crisis behavior and the resulting consumer–brand relationship (CBR) response. Drawing from theoretical traditions in brand transgressions, service failure, and crisis communications, we use longitudinal survey data combined with archival social media data to empirically test the effect of crisis response speed and crisis information strategy on the short-term consumer crisis response evaluations (1 month after crisis response), and the long-term CBR (1 year after crisis response). Results show that, contrary to intuitive expectations, a faster firm response is not always better, as a slower response was found to result in higher crisis response evaluations. We also show that this effect depends on the consistency of the communication strategy with the first active response. Specifically, when a firm prioritizes safety information (instructing strategy), a faster response is better. Whereas, when the firm prioritizes well-being information (adjusting strategy), a slower response is better. We argue the counterintuitive finding that a slower response is better implies that reacting too quickly may signal rashness and unpreparedness to the customer, leading to more negative evaluations. We term this distinction the difference between being responsive (fast but considered) and reactive (faster but rash).     

How do low-income enrollees in the Affordable Care Act marketplaces respond to cost-sharing?

The Affordable Care Act requires insurers to offer cost-sharing reductions (CSRs) to low-income consumers on the marketplaces. We link 2013–2015 All-Payer Claims Data to 2004–2013 administrative hospital discharge data from Utah and exploit policy-driven differences in the actuarial value of CSR plans that are solely determined by income. This allows us to examine the effect of cost-sharing on medical spending among low-income individuals. We find that enrollees facing lower levels of cost-sharing have higher levels of healthcare spending, controlling for past healthcare use. We estimate demand elasticities of total health care spending among this low-income population of approximately −0.12, suggesting that demand-side price mechanisms in health insurance design work similarly for low-income and higher-income individuals. We also find that cost-sharing subsidies substantially lower out-of-pocket medical care spending, showing that the CSR program is a key mechanism for making health care affordable to low-income individuals.