THE SCOPE FOR NON‐PROFIT OBJECTIVES IN A MIXED OLIGOPOLY UNDER INTERNATIONAL COMPETITION

We ask how the scope for non‐profit objectives in a state‐owned enterprise (SOE) in a mixed oligopoly changes because of competition from firms in another country. There is no change if costs and demand are given, unless the trade partner is a low‐cost country. However, the scope for non‐profit objectives is limited by the country's relative size if wages are market‐clearing and if workers and firms are stationary, because of reduced competitiveness caused by higher real wage rates. The total surplus is then not affected by the actions of the SOE. International trade does not otherwise reduce the scope for its non‐profit objectives if workers and firms are mobile, but productivity differences might require restrictions in order to avoid a complete relocation of the workforce in either country.     

Do We Really Need a European Agency for Market Regulation?

In November 2007, the European Commission suggested that an EC regulatory agency should be set up for the telecommunications markets. The following paper examines the key tasks and structure of the proposed agency and identifies the limits to the delegation of powers involved by reflecting on the relevant case law and the existing doctrine. It compares the concept with a recently published rapporteur report to the European Parliament and an alternative model of a joint body of national regulatory authorities. The authors wish to thank Martin Busch, Student of Law and Politics at the University of Bonn, for his valuable assistance.     

Editorial

Original Papers

Editorial     

I. Allgemeine Wirstchaftslehre

Ohne Zusammenfassung     

Private Debt and Timely Loss Recognition

Abstract

In this study, we investigate whether private debt contracting provides incentives for borrowers to recognize economic losses earlier in accounting earnings. Focusing on the window around firms' issuances of private loans, we document that timely loss recognition significantly increases following an issuance. This effect is significantly stronger for debt contracts that include performance covenants acting as trip-wires when firm performance deteriorates. We also find that timely loss recognition is particularly used when writing debt contracts is hampered by uncertainty about a firm's future development. These findings are consistent with timely loss recognition being used to increase contract efficiency by facilitating state-contingent control allocation based on a borrower's performance over the loan term.     

Whole of government accounting in New Zealand: the ownership form of control

There are lessons to be learned from the emergence of comprehensive government financial reporting in New Zealand. Developments suggest ownership assumptions shaped policy and implied a particular role of government. These lessons are instructive on the relationship between reporting, organizational form, and constitutional considerations, and, importantly, about usefulness.     

True and Fair View Revisited – A Reply to Alexander and Nobes

This paper is a response to the critical comments of Alexander (2006) and Nobes (2006) on our article on revenue recognition, which was published last year in this journal (Wüstemann and Kierzek, 2005). While Alexander primarily objects to our statement that there is a ‘requirement of legal certainty in the European Union’, Nobes challenges our interpretation of the true and fair view principle and its role in the endorsement and application of International Financial Reporting Standards (IFRS) in the EU. We rebut Alexander's objections by providing references, which evidence that the principle of legal certainty represents a fundamental concept of Community law. We refute Nobes' counterarguments by inferring from the objective of the IAS Regulation and the purpose of the endorsement mechanism that a common meaning of the true and fair view principle must exist in the EU, that IFRS should only become applicable in the EU if they are not contrary to this ‘European’ true and fair view principle and that the true and fair view principle should also be considered in the application of IFRS in the EU, particularly in the choice of accounting policies for unregulated issues.     

Sensory Experiences and Expectations of Italian and German Organic Consumers

We explore sensory experiences and expectations of Italian and German organic consumers when purchasing and eating organic food. Ten focus group interviews were performed and the results were analyzed using qualitative content analysis. Outcomes indicated that although sensory attributes are not the main purchase drivers, flavor and odor are the most important in driving consumers' choice. Findings also suggested that training consumers' sensory abilities offers new market opportunities to organic marketers. From a marketing perspective, Italian consumers seem to equally appreciate nonsubjective as well as subjective marketing information about organic products, whereas in Germany non subjective aspects appear to be predominant.     

Sensation‐Seeking Attributes Associated with Storm‐Chasing Tourists: Implications for Future Engagement

This study explores recreational storm chasing, a new form of niche tourism. In particular, this study examines sensation‐seeking traits associated with participants' socio‐demographics, storm‐chasing involvement and tour satisfaction levels. Results show that recreational storm chasers scored highest on Experience Seeking and lowest on Boredom Susceptibility sensation‐seeking dimensions. Correlation tests showed that several socio‐demographic, storm‐chasing involvement and tour satisfaction indicators are associated with Thrill and Adventure Seeking, Boredom Susceptibility, and Experience Seeking dimensions. Marketing and management implications of study results also are discussed. Copyright © 2011 John Wiley & Sons, Ltd.