Accidental Bequests: A Curse for the Rich and a Boon for the Poor*

When accidental bequests signal otherwise unobservable individual characteristics, such as productivity and longevity, the population should be partitioned into two groups: those who do not receive an inheritance and those who do. The first tagged group receives a Mirrlees second‐best tax schedule; the second group, when its type is fully revealed, faces a first‐best tax schedule. Receiving an inheritance makes high‐ability types worse off and low‐ability types better off. High‐ability individuals face a bequest tax of more than 100 percent, while low‐ability types face a bequest tax that can be smaller, as well as larger, than 100 percent, and it might even be negative.     

Markets as communication systems

As the information relative to endowments, costs and preferences is dispersed among many agents, the quality of resource allocation depends on the ability of markets to communicate information inside the economic system. Because information is transferred through negotiation and transaction behaviors, the network of trading relations defines the channels through which it flows. In the present study, we use new computational tools to analyze the performance of two wholesale trade institutions widely used around the world: network trading and marketplace trading. Whilst network trading and marketplace trading disseminate far fewer bits of information than a perfectly transparent benchmark market, they often manage to generate an allocation of resources that is almost as good. In many cases, network trading proves more effective than marketplace trading (contrary to a common preconception). This surprising performance of network trading is linked to a form of indirect arbitrage induced by connections between networks. Implications for market design and public policy making are presented, along with prospects for further research.     

Perceived benefits of loyalty programs: Scale development and implications for relational strategies

Positive outcomes of loyalty programs are clear for firms, yet little research examines customer perceptions. To address this gap, this article investigates various perceived benefits of loyalty programs using a multi-benefit framework based on utilitarian, hedonic, and relationship literature. Two quantitative studies, involving 658 French members of loyalty programs, provide a 16-item scale that measures five types of perceived benefits: monetary savings, exploration, entertainment, recognition, and social benefits. The five dimensions have different impacts on satisfaction with the program, loyalty to the program, and perceived relationship investment of the firm. This article offers a discussion of the theoretical and managerial implications of these findings for relationship marketing strategies.     

Hinterland transportation in Europe: Combined transport versus road transport

The dominance of road for hinterland services could be challenged by using rail-road or waterway-road transport because of costs, congestion and growing environmental constraints. A common dynamic that is very favorable to the development of combined transport is shared among the actors of the transport chain but with different starting positions considering the ports of the Northern Range.But combined transport must still demonstrate that it can compete with road transport. Road transport and combined transport are not directly comparable because they do not offer the same physical transport service. The organizational patterns of road and combined transport are investigated. The example of hinterland services to and from the port of Le Havre to the Paris region is a particularly interesting case because of the very short distance. It is shown that the competitiveness of combined transport in terms of price varies greatly according to the way road transport it competes with is organized and that the commercial policy of combined transport operators plays a key role for explaining this competitiveness. Additional services such as additional dwelling times and specific custom advantages are paramount of importance to encourage the shift from road transport to combined transport.     

Active ageing in developing countries? – trip generation and tour complexity of older people in Metro Manila

There is by now quite a substantial body of literature discussing the impact of an ageing population in developed countries on travel needs and required changes to transport policy. As many newly developed and developing countries are following demographic trends of “first world” countries, but offset by some decades, the problem is, however, not limited to the industrialised nations. The focus of this paper is on Metro Manila and analyses travel patterns by those aged 60 or over. Trip frequency and tour complexity are analysed with ordered probit regression, separating the effects of socio-demographic characteristics as well as land-use patterns. The results are compared to observations made for cities in developed countries, in particular London as an example for a city in a first world country. We show that there is a more pronounced decrease in total trips made with increasing age in Manila. However, analysing for specific trip purposes we find, similarly to trends in developed countries, that the number of recreational trips is fairly constant in all age groups. Recreational activities also seem to take more time per day than average for younger old, possibly indicating the advent of similar active ageing trends as in industrialised nations. The paper concludes by discussing some implications given future economic trends and advocates that better datasets from developing and newly developed countries are required for urban planning in developing countries.     

The unpredicted rise of motorcycles: A cost benefit analysis

This article examines the consequences, for Paris, of the increase in two-wheel motor vehicle (2WMV) traffic (measured in vehicle/km). Our study reveals that, between 2000 and 2007, the subway's (Métro) share in total inner-Paris travel increased by 13.6%, the RER's share by 10.3% and the SNCF's share by 20.5%. These three means of transport account for 58% of daily travel. On the other hand, the bus share has decreased by 16% and that of cars by 23.7%. Private motor vehicles represent 37.3% of total travel. Looking at road traffic, where public transport (buses) and private motor transport compete for the use of limited road space, private motor vehicles account for 91.5% and public transport 8.5% of total travel.The 2WMV share in Paris traffic increased by 36% between 2000 and 2007, with 2WMVs now accounting for a share twice as large as that of buses. A survey has shown that 100 million additional passenger kilometres were made by 2WMV in 2007 compared to 2000. 53% of this increase comes from people shifting to 2WMV from public transport and 26.5% from private cars. The remaining 20% is attributable to the increased use of 2WMVs by those already owning such vehicles in 2000.Is the growth in the share of 2WMV traffic in Paris beneficial to the community? This shift in the means of transport generates time savings of €293 million and increases owners' vehicle usage costs by €49 million. The cost of accidents is increased by €49 million and the negative consequences in terms of pollution are estimated at €22.6 million. The welfare impact of the government revenue change is negative and equal to €4.7 million. In total, the gain for the community is therefore around €168 million. Accident costs are the key issue. The fact that there are on average 21 2WMV fatalities in Paris (average 2006–2007) for a means of transport accounting for 16% of passenger/km made every day in Paris offers a striking contrast to the 6 (average 2006–2007) fatalities concerning cyclists which account for a mere 0.1% of trips. The massive shift to 2WMV has taken place without any public policy support. Public policy could easily further improve the 2WMV cost-benefit balance by taking measures that would decrease the number of accidents.     

Understanding B2B and the Web: the acceleration of coordination and motivation

This paper explores business-to-business (B2B) marketing on the Internet, and how the confluence of the two may transform the B2B landscape. Specifically, it discusses the notion of linkage value to demonstrate why the B2B phenomenon on the Internet is so significant. It then considers the mechanisms and enablers that have made the Web such an important B2B marketing channel. It also explores how the Web can reduce transaction costs, thereby facilitating more efficient exchanges and markets. The concepts of links and nodes are then introduced and the processes of disintermediation, reintermediation, disaggregation and reaggregation are explored. Finally, Web B2B configurations are considered by way of a model that describes four archetypal configurations, and the factors that are antecedent to these modes and how the Web may influence them.     

Analyzing credit risk transmission to the nonfinancial sector in Europe: A network approach

We use a factor model and elastic net shrinkage to model a high-dimensional network of European credit default swap (CDS) spreads. Our empirical approach allows us to assess the joint transmission of bank and sovereign risk to the nonfinancial corporate sector. Our findings identify a sectoral clustering in the CDS network, where financial institutions are in the center and nonfinancial entities as well as sovereigns are grouped around the financial center. The network has a geographical component reflected in different patterns of real-sector risk transmission across countries. Our framework also provides dynamic estimates of risk transmission, a useful tool for systemic risk monitoring.     

Partner‐diversity effects on alliance termination in the early stage of green alliance formation: Empirical evidence from carbon‐emission reduction projects in Latin America

Partner diversity is a key influencer in interorganizational alliances, and several empirical studies have shown that its outcomes are contingent on alliance‐specific factors. We extend this research as well as the growing literature on green alliances, in which partner diversity is uniquely high. Specifically, we examine partner‐diversity effects on alliance termination in the early stage of green alliance formation. We hypothesize that in this context, size disparity increases termination likelihood, whereas organizational variety and cultural separation have the opposite effect. To test our hypotheses, we use a sample of 366 alliance projects located in Latin America and submitted to the Kyoto Protocol's Clean Development Mechanism for evaluation, validation, and registration from 2004 to 2014. Our findings contribute to several research streams and provide practical guidance for successful formation of alliances focused on environmental protection.     

Fiscal Policy when Individuals Differ with Regard to Altruism and Labor Supply

This paper studies the incidence of tax-transfer policy in a growth model wherein individuals differ according to their level of intergenerational altruism and have an endogenous labor supply. The main result is that public debt is neutral at the macro level but redistributes resources from nonaltruists to altruists. Capital income taxation can hurt the nonaltruists who do not have any wealth more than it hurts the altruists who own all of it. Whether or not the altruists supply a positive amount of labor makes a big difference as to the incidence of alternative tax transfer policies.