Distribution Equity: Creating Value through Managing Knowledge Relationships with Distribution Channels

We introduce the concept of distribution equity torepresent the asset value of a distribution relationship. Distributionequity is characterized as the increase in options value ofmarketing opportunities that result when a firm effectively utilizesits knowledge relationships with an existing distribution channelpartner to create and market its products. By providing a frameworkcharacterizing various forms of knowledge in a channel partnerrelationship and the ways in which they can increase the optionsvalue of a firm's product development and marketing opportunities,we provide a framework for improving the management of distributionequity.     

The institutional dynamics of early modern Eurasian trade: The commenda and the corporation

The focus of this article is on legal-economic institutions that organized early-modern Eurasian trade. It identifies two such institutions that had divergent dispersion patterns, the corporation and the commenda. The corporation ended up as a uniquely European institution that did not migrate until the era of European colonization. The commenda that originated in Arabia migrated all the way to Western Europe and to China. The article explains their divergent dispersion based on differences in their institutional and geographical environments and on dynamic factors, claiming that institutional analysis errs when it ignores migration of institutions and providing building blocks for the modeling of institutional migration.     

Did Competition Drive Down the Profitability of China's State-owned Enterprises?

MOCT-MOST: Economic Policy in Transitional Economies -     

Effect of Quality Characteristics on Consumers' Willingness to Pay for Gala Apples

This paper uses individual apple‐level data that include consumer sensory assessments and instrumental measurements of internal quality to analyze willingness to pay for Washington State Gala apples. Three distinct models are estimated: a model that includes destructive internal quality measures of apple characteristics, a model that utilizes only non‐destructive internal quality measures, and a consumer model that includes subjective consumer sensory evaluations and consumer socio‐demographic characteristics. The objective is to identify instrumental measures of internal quality that can be used to inform the apple industry of consumer preferences. The consumer model serves as a benchmark. Finally, we evaluate whether non‐destructive measures of internal quality can substitute for destructive measures. We find that firmness and soluble solids content are significant and can be measured effectively using non‐destructive measures. Implications of the findings for the apple industry in terms of marketing and possible “elite” standards for apples are discussed. Le présent article utilise des données individuelles, notamment des évaluations sensorielles et des mesures instrumentales, pour analyser la volonté de payer des consommateurs pour des pommes Gala de l'État de Washington. Nous avons estimé trois modèles : un modèle comprenant des mesures instrumentales qui affectent la qualité interne des pommes; un modèle qui utilise des mesures instrumentales qui n'affectent pas la qualité interne; un modèle du consommateur qui comprend des évaluations sensorielles subjectives et des caractéristiques sociodémographiques. L'objectif consistait à identifier les mesures instrumentales qui pourraient être utilisées pour renseigner l'industrie pomicole sur les préférences des consommateurs. Le modèle du consommateur a servi de point de référence. Finalement, nous avons examiné si les techniques non destructives de mesure de la qualité interne pouvaient ou non remplacer les techniques destructives. Nous avons trouvé que la fermeté et la teneur en solides solubles sont des caractéristiques importantes et qu'elles peuvent être mesurées efficacement au moyen de techniques non destructives. Nous discutons des répercussions de ces résultats sur l'industrie pomicole sur le plan du marketing et de l'établissement possible de normes ?élite?.     

Putting the Corporation in its Place

This article challenges the idea that the corporation is a globallysuperior form of business organization and that the Anglo-Americancommon-law is more conducive to economic development than thecode-based legal systems characteristic of continental Europe.Although the corporation had important advantages over the mainalternative form of organization (partnerships), it also haddisadvantages that limited its appeal to small- and medium-sizedenterprises (SMEs). As a result, when businesses were providedwith an intermediate choice, the private limited liability company(PLLC) that combined the advantages of legal personhood andjoint stock with a flexible internal organizational structure,most chose not to organize as corporations. This article tracksthe changes that occurred in the menu of business organizationalforms in two common-law countries (the United Kingdom and theUnited States) and two countries governed by legal codes (Franceand Germany) and presents data showing the rapidity with whichfirms in each country responded to enabling legislation forPLLCs. We show that the PLLC was introduced first and most easilyin a code country (Germany) and last and with the most difficultyin a common-law country (the United States). Late introductionwas associated with prolonged use of the partnership form, suggestingthat the disadvantages of corporations did indeed weigh heavilyon SMEs.     

Relative Wealth Concerns and Financial Bubbles

We present a rational general equilibrium model that highlightsthe fact that relative wealth concerns can play a role in explainingfinancial bubbles. We consider a finite-horizon overlappinggenerations model in which agents care only about their consumption.Though the horizon is finite, competition over future investmentopportunities makes agents' utilities dependent on the wealthof their cohort and induces relative wealth concerns. Agentsherd into risky securities and drive down their expected return.Even though the bubble is likely to burst and lead to a substantialloss, agents' relative wealth concerns make them afraid to tradeagainst the crowd.     

An Evaluation of Import Tariffs in the Canada-U.S. Fresh Tomato Market

A quarterly econometric simulation model of the Canada-U.S. tomato market was constructed to evaluate the effects of tariff policies on producers, consumers, and international trade. The model consisted of seven behavioral equations and four identities. Mexican participation in the Canada-U.S. market is explicitly included through an equation defining the supply of Mexican tomatoes available for export. The model was used to compare simulated market outcomes over time with all variables held at actual levels to outcomes resulting from simulations where U.S. and Canadian tariffs were changed from their historical levels. The effect of the U.S. tariff on the U.S. winter market was examined by first doubling U. S. tariff values and then by eliminating U. S. tariffs. The effect on the Canadian summer market was tested by similar changes in the Canadian tariff. Results indicate that due to the ad valorem nature of the Canadian tariff structure, Canadian producers have received considerably more protection in recent years than have U.S. producers. The tariff mechanism does provide an effective means to administratively manipulate international competition in the North American fresh tomato market. On a bati un modéle simulé d'économetrie trimestrielle du marché de tomates canadien-américain pour évaluer les effels de la politique douaniére sur les producteurs, les consommateurs et le commerce international. Le modéle consistait en sept équations behavioristes et quatre identités. On a tenu compte explicitement de la participation du Mexique au sein du marché canadien-américain gráce á une équation qui déftnit l'offre en tomates mexicaines destinées á l'exportation. On a utilisé le modéle pour comparer d'une part les résultats á long terme des marchés simulés dont toutes les variables étaient fixées aux niveaux réels et d'autre part, les résultats provenant de simulations oú les tarifs douaniers americains et canadiens furent modifiés par rapport à leurs niveaux historiques. On a examiné l'effet du tarif douanier américain sur le marchè d'hiver américain, d'abord en doublant les valeurs des tarifs douaniers américains, ensuite en éliminant ces mémes tarifs. Gráce á des changements similaires portant sur les tarifs douaniers canadiens, on a testé l'effet sur le marché d'été canadien. Les résultants indiquent que, á cause de la nature proportionnelle de la structure des tarifs douaniers canadiens les producteurs canadiens ont reçu beaucoup plus de protection ces derníeres années que leurs homologues américains. Le mécanisme douanier fournit bien un moyen efficace de manipuler administrativement la concurrence internationale dans la marché américain de la tomate fraìche.     

Plural Cities and Ethnic Enclaves: Introducing a Measurement Procedure for Comparative Study

World cities attract two major streams of migrants – those who occupy the upper levels of their occupational hierarchies (the ‘globalized professionals’) on the one hand and marginalized, low–skill workers on the other. These two groups are often of different ethnic status, and it is argued that multicultural world cities are thus fractured in both their labour and housing markets along ethnic as well as economic lines. There has been little formal testing of these ideas, however. In this introductory article we introduce a method that can be used for comparative studies of residential fragmentation – an index of residential concentration – and apply it to three cities which have experienced rapid, multiethnic immigration in recent decades (New York, Sydney and Auckland). The patterns displayed indicate much greater fragmentation in New York than in the other two cities, suggesting that the ‘conventional wisdom’ regarding ethnic residential patterns may over–emphasize ‘American exceptionalism’. Les villes mondiales attirent deux grands flux de migrants: ceux qui occupent les niveaux supérieurs de leurs hiérarchies professionnelles (les ‘experts mondialisés’) d’une part, et les travailleurs peu qualifiés et marginalisés, de l’autre; ces deux groupes sont souvent de statut ethnique différent. De ce fait, ces grandes villes multiculturelles subissent, dit–on, une fracture de leurs marchés du travail et du logement selon des critères à la fois ethniques et économiques – affirmations qui ont rarement été mises à l’épreuve. Cet article introductif présente une méthode utilisable dans des études comparatives de fragmentation résidentielle – indice de concentration résidentielle – en l’appliquant à trois villes ayant connu une rapide immigration multiethnique au cours des dernières décennies (New York, Sydney et Auckland). Les modèles obtenus indiquent une fragmentation bien plus importante à New York que dans les deux autres villes, suggérant que la ‘croyance populaire’à l’égard des schémas résidentiels ethniques surestime peut–être ‘l’exception américaine’.