Economics of information security investment in the case of concurrent heterogeneous attacks with budget constraints

In this study we develop an analytic model for information security investment allocation of a fixed budget. Our model considers concurrent heterogeneous attacks with distinct characteristics and derives the breach probability functions based on the theory of scale-free networks. The relationships among the major variables, such as network exposure, potential loss due to a security breach, investment effectiveness, and security investment levels, are investigated via analytical and numerical analyses subject to various boundary conditions. In particular, our model shows how a firm should allocate its limited information security budget to defend against two classes of security attacks (targeted and opportunistic) concurrently. Among the results of these analyses, we find that a firm with a limited security budget is better off allocating most or all of the investment to measures against one of the classes of attack. Further, we find that managers should focus the security investment on preventing targeted attacks when the information systems are highly connected and relatively open and when the potential loss is large relative to the security budget.     

Analysis of interactions among core,transaction and relationship-specific investments: The case of offshoring

Through the use of core, transactional and relational specificity constructs, the paper studies how the emphasis of clients’ who move business processes offshore, changes over time to represent complex relationships between investments in core, transaction and relationship-specific assets. The complex combination of these investments helps clients attain evolving objectives in offshoring alliances. Interpretive Structural Modelling (ISM) has been used to establish changing emphases of the specific elements in offshoring alliances.     

Manufacturing and the Trade Balance

When the world shifted to the regime of flexible exchange rates after 1970, economists expected that large trade imbalances would soon disappear. Instead, such imbalances not only persisted but soared in the 1980s and 1990s, in spite of significant changes in important currencies such as the yen, the mark and the dollar. This paper reports that manufacturing importers tend to suffer trade deficits whereas exporters of manufacturing products tend to enjoy trade surpluses. The reason lies in the higher rates of productivity growth experienced by exporters of manufactures.     

Raising capital in emerging markets with restricted Global Depositary Receipts

Despite serious governance concerns revealed in Rule 144A and/or Regulation S Global Depositary Receipt (GDR) circulars, institutional investors voluntarily purchase these illiquid securities. Like issuers of Level III American Depositary Receipts (ADRs), GDR issuers exhibit strong pre-offer performance, with higher average Tobin's q ratios, sales growth rates, sales levels, returns on equity, and dividend payout ratios than their home-market counterparts. However, GDRs are issued predominantly by firms in emerging markets, while ADRs are issued mostly by firms in developed markets. After controlling for country and industry effects, we find that ADR issuers are larger and that they employ more reputable underwriters than GDR issuers do, but no other significant differences emerge. Notwithstanding their similarities, GDRs have larger discounts than ADRs, suggesting that legal bonding provides benefits that reputational bonding cannot fully replicate. However, within the sample of GDRs, pre-offer performance attributes also influence pricing. Specifically, discounts vary inversely with issue size but directly with firm size, suggesting that economies of scale exist in the GDR issue process and that potential agency costs are higher in larger firms. GDR discounts also vary inversely with incremental returns on equity in all partitions of the data, indicating the importance of pre-offer profitability in establishing the reputation of the issuing firm and in increasing the GDR offer price.     

Consumer Motives and Purchase Preferences for Organic Food Products: Empirical Evidence From a Consumer Survey in Bangalore,South India

ABSTRACT

Consumer organic food choice motives and purchase preferences were studied in a structured quantitative survey (N = 201) in Bangalore, with the aim of identifying consumer segments based on these motives and preferences. Further, sociodemographic differences between the clusters were studied. Face-to-face interviews were used to sample the data, which were analyzed with factor and k-means cluster analysis (SPSS 16.0). Five latent factors were identified based on the motives, representing a set of consumer concerns labeled here as “food phobia” (health),” “environment,” “humanity,” “healthy eaters,” and “control.” Further, three clusters emerged from these motives representing 38%, 37%, and 25% of the sample size. The factors differ in terms of variance. Here, the records of perceived healthiness (food phobia) were the most important element, explaining 18.37% of the total variance. These clusters were differing in terms of the level and order of motivations. The health factor was a most important motive in two clusters, followed by environment. Further, humanity was the most important motive for the third cluster. This may reflect a heterogeneous nature of consumers in study area. Additionally, five clusters were identified based on the preferences, and profiles of these clusters differed in terms of sociodemographic factors and consumption pattern. Segments were identified based on motivating factors and preferences, and linking them with food choice motives and products preference provides the input needed by marketing professionals and policy makers to calibrate more efficient marketing strategies to better focus and position their products and design their communication strategies for target segments.     

NON-WELFARIST OPTIMAL TAXATION AND BEHAVIOURAL PUBLIC ECONOMICS

Abstract.  Research in behavioural economics has uncovered the widespread phenomenon of people making decisions against their own good intentions. In these situations, the government might want to intervene, indeed individuals might want the government to intervene, to induce behaviour that is closer to what individuals wish they were doing. The analysis of such corrective interventions, through taxes and subsidies, might be called 'behavioural public economics'. However, such analysis, where the government has an objective function that is different from that of individuals, is not new in public economics. In these cases the government is said to be 'non-welfarist' in its objectives, and there is a long tradition of non-welfarist welfare economics, especially the analysis of optimal taxation and subsidy policy where the outcomes of individual behaviour are evaluated using a preference function different from the one that generated the outcomes. First of all the object of this paper is to present a unified view of the non-welfarist optimal taxation literature and, second, to present behavioural public economics as a natural special case of this general framework.     

Culture, management accounting and managerial performance: Focus Iran

Modern management and control systems may not be equally effective in every country. Budget participation is one of the effective tools in western nations. However, management control tools, in general, and budget participation, in particular, could be ineffective or even dysfunctional in other environments. Hofstede (1980) had suggested that cultural differences among countries are influencing factors. In this study, we investigate the impact of culture, budgetary participation, and management accounting systems on managerial performance in Iran. Three-way analyses of variance are used separately for each of the four cultural Hofstede dimensions. We find convincing evidence that the application of management tools and techniques developed in western countries for effective management performance is not as useful in the Iranian context.     

The structure of reseller goals and performance in marketing channels

The typical view of a marketing channel is that of a manufacturer-designed and-controlled distribution system. However, today, marketing functions, as well as market power, are more evenly distributed in the channel. In organizing and managing the modern channel, it is important to understand the business circumstances and priorities confronting channel members. This article studies how reseller firms establish their goal hierarchies and how these goals are related to performance. It hypothesizes that goal priorities emerge in relation to the environmental imperatives faced by the firm. The article develops hypotheses that are tested on survey data collected from a sample of franchisee firms, using structural equation models. The results support all the hypotheses about the effects of primary goals on performance. The effects of secondary goals are not unequivocal but informative nevertheless. Overall, the study points to interesting theoretical and managerial conclusions. Ravi S. Achrol (raachrol@mail.wvu.edu) (Ph.D., Northwestern University) is the Kmart Professor of Marketing in the College of Business & Economics at West Virginia University. Previously, he has served on the faculties of the George Washington University and the University of Notre Dame. His areas of research interest include distribution channels, marketing strategy, interorganizational relations, and network organization. His articles have appeared in theJournal of the Academy of Marketing Science, theJournal of Marketing, theJournal of Marketing Research, theJournal of Public Policy and Marketing, theJournal of Retailing, Social Science Research, theJournal of Business Strategy, and various other publications. Michael J. Etzel (michael.j.etzel.1@nd.edu) (DBA, University of Colorado) is a professor of marketing at the University of Notre Dame. He has previously served on the faculties of the University of Kentucky and Utah State University. His areas of research include marketing management and strategy, retailing, and buyer behavior. In 1996–1997, he served as chair of the Board of the American Marketing Association. His research has appeared in a variety of publications, most notably theJournal of Marketing Research, theJournal of Marketing, theJournal of Consumer Research, and theJournal of Retailing.     

Trade Policy and Poverty In the United States: Theory and Evidence, 1947-1990*

This paper develops a two-sector general equilibrium model to examine the impact of technical progress, factor accumulation, labor growth, unemployment, trade policy, and the government's antipoverty programs on the rate of poverty. the results are then tested empirically using the data regarding the United States. We find that low unemployment, productivity growth, and government transfers have the expected effects of alleviating poverty; but trade liberalization has the unexpected effect of being associated with a major increase in poverty-a result contradicting traditional views.