Openness,inequality and poverty: Endowments matter

Using tariffs as a measure of openness, this paper finds consistent evidence that the conditional effects of trade liberalization on inequality are correlated with relative factor endowments. Trade liberalization, measured by changes in tariff revenues, is associated with increases in inequality in countries well-endowed with highly skilled workers and capital or with workers that have very low education levels. Similar, although less robust, results are also obtained when decile data are used instead of the usual Gini coefficients. Taken together, the results are strongly supportive of the factor-proportions theory of trade and suggest that trade liberalization in poor countries where the share of the labor force with little education is high raises inequality. Simulation results also suggest that relatively small changes in inequality as measured by aggregate measures of inequality, like the Gini coefficient, are magnified when estimates are carried out using decile data.     

Product-based cultural change: Is the village global?

We provide a model of product-based cultural change where trade integration leads to cultural convergence. A standard trade model of Dixit–Stiglitz monopolistic competition is coupled with a micro-founded model of cultural dynamics. We show that access to varieties that are attached to a global cultural type changes the incentives of parents to socialize their children and transmit their type. The resulting increase in agents of the global cultural type leads to a magnification of the initial shock. A striking feature of the model is that even temporary shocks to openness may have permanent effects through the changing distribution of preferences in the economy.     

Small clicks,great effects: the immediate and delayed influence of websites containing serious games on behavior and attitude

The number of websites containing persuasive serious games and advergames has increased over the past several years, but their immediate and delayed effects on behavior are still not well understood. The present field experiment (n = 388, varied socio-professional groups) demonstrates that interactivity linked to this type of website provokes positive effects on immediate behavior (purchases of energy-saving light bulbs, ESLBs) in a ‘real setting.’ It further affected the behavior (installation of ESLBs at home), the memorization of the website's arguments, gains in knowledge, attitude, and other judgments regarding ESLBs, when measured two weeks later. The digital signature of a commitment to perform an expected behavior via a web page also provokes positive behavioral effects. This can accumulate through the effects of interactivity. We close with a discussion of the possible psychological processes involved, theoretical and practical implications and limitations as well as new perspectives for advertising and advergames research.     

Mapping retailing research with bibliometric indicators

Our study aims to give a global perspective regarding scientific research on retailing for the 1990–2014 period. The research shows a knowledge-domain-map that identifies the collaboration networks between authors and the links between journals. This was conducted through a bibliometric study that can be viewed with Visualization of similarities (VOS) viewer software. The results show that the Journal of Retailing and Management Science is the current leader in the field. In addition, Morgan and Hunt’s (1994) article in the Journal of Marketing is the most cited source to date.     

Impact investing and sustainable market transformations: The role of venture capital funds

Impact investors often know their financial return on investments, but are less certain about their impact. This article frames impact as their contribution to sustainable market transformation. A sustainable market transformation consists of inception, first movers, critical mass, and institutionalization phases. Given the nature of such transformations, the impact is effectuated at different moments and toward various market actors. Based on an exploratory research design with semi-structured expert interviews, this article aims to create an overview of the roles of impact venture capital funds in sustainable market transformations. The results suggest that the view that the capitalization of start-ups is the only impact of impact investors is a misconception. The needs of companies with sustainability value propositions change over time and consequently impact investors perform various roles. For example, exiting an investment while upholding social and environmental objectives communicates to mainstream business that the start-up is ready to create a greater impact. Further, impact investors fulfill external roles that change the perspectives of institutional actors toward sustainable investments. Based on an overview of the different roles that impact investors fill, this article proposes a future research agenda to strengthen our knowledge about the impact return of investments.     

Protecting Quality of Wine Exports to China: Barriers and Bridges

There is a great potential for wine to deteriorate during shipment and storage of wines being exported from the United States to China. Certification of storage conditions such as that provided by the Hong Kong Quality Assurance Agency (HKQAA) is a key bridge to protecting quality and maintaining value in the auction market there. A literature review and semistructured interviews with winery managers, freight forwarders, transportation experts, and representatives of HKQAA provide qualitative analysis of barriers and bridges to protecting quality. The article presents a strong case for the adoption of storage and transportation standards for wine, such as the Wine Storage Management System implemented by HKQAA. Looking at wine exports through the lens of Total Quality Management provides the basis for recommending formal certification.     

Why do most countries set high tax rates on capital?

We consider tax competition in a world with tax bases exhibiting different degrees of mobility, modeled as mobile and immobile capital. An agreement among countries not to give preferential treatment to mobile capital results in an equilibrium where mobile capital is nevertheless taxed relatively lightly. In particular, one or two of the smallest countries, measured by their stocks of immobile capital, choose relatively low tax rates, thereby attracting mobile capital away from the other countries, which are then left to set revenue-maximizing taxes on their immobile capital. This conclusion holds regardless of whether countries choose their tax policies sequentially or simultaneously. In contrast, unrestricted competition for mobile capital results in the preferential treatment of mobile capital by all countries, without cross-country differences in the taxation of mobile capital. Nevertheless our main result is that the non-preferential regime generates larger expected global tax revenue, despite the sizable revenue loss from the emergence of low-tax countries. By extending the analysis to include cross-country differences in productivities, we are able to resurrect a case for preferential regimes, but only if the productivity differences are sufficiently large.     

Business and the Public Affairs of Slavery: A Discursive Approach of an Ethical Public Issue

This article aims at understanding how “ethical public issues” are created, and dealt within a public arena. Here, we view ethical public issues as social constructs, which are the results of issue framing contests. Such an approach will enable us to understand how ethical public issues emerge and are shaped by strategizing actors (including firms, NGOs, the media, and governments), in an attempt to impose their own definition and preferred solution to the issue. We also propose key factors which explain the success of a framing attempt, and evidence of such success. The empirical case of the labor conditions in West Africa’s cocoa industry is used to illustrate this theoretical framework and methodological approach.     

Virtual borders

Numerous studies have documented substantial deviations from the law of one price for consumer goods. However, in most cases small transaction costs can explain these violations. In our study, we purposely focus on a market where such frictions are minimal, namely online bookselling in the US and Canada. We exploit the high frequency nature of the data to disentangle nominal rigidities from market segmentation and show that while firms seem to respond to domestic competitive pressure, there is no evidence that they react to fluctuations in the relative price of foreign competition following exchange rate movements. In addition, we cannot identify any significant impact on sales volume stemming from variations in international relative prices. Hence, our results suggest that even in an environment with minimal frictions, international market segmentation is extensive and responsible for violations of the law of one price.