Auctions with a buy price

eBay and Yahoo allow sellers to list their auctions with a buy price at which a bidder may purchase the item immediately. On eBay, the buy-now option disappears once a bid is placed, while on Yahoo the buy-now option remains in effect throughout the auction. We show that when bidders are risk averse, both types of auctions raise seller revenue for a wide range of buy prices. The Yahoo format raises more revenue than the eBay format when bidders have either CARA or DARA. Bidders with DARA prefer the eBay auction, while bidders with CARA are indifferent between the two. Part of this work was completed while Reynolds was a visitor at Instituto de Analisys Economico in Barcelona and while Wooders was a visitor at Hong Kong University of Science and Technology. We are grateful to these institutions for their hospitality.     

Volume,volatility and information linkages in the stock and option markets

This paper examines the relationship between option trading activity and stock market volatility. Although the option market is uniquely suited for trading on volatility information, there is little analysis on how trading activity in this market is linked to stock price volatility. The bulk of the discussion tends to focus on whether trading activity in the stock market is informative about stock volatility. To analyze the information in option trading activity for stock market volatility, a sample of 15 stocks with the highest option trading volume is selected. For each stock, it is noted that the trading activities in the put and call option markets have significant explanatory power for stock market volatility. In addition, the results indicate that the call option trading activity has a stronger impact on stock volatility compared with that of the put options. Our results demonstrate that information and sentiment in the option market is useful for the estimation of stock market volatility. Also, the significance of the effects of option trading activity on stock price volatility is observed to be comparable to that of stock market trading activity. Furthermore, the persistence and asymmetric effects in the volatility of some stocks tend to disappear once option trading activity is taken into account.     

Content Analysis of the ‘Clean Your Plate Campaign’ on Sina Weibo

ABSTRACT

At the beginning of 2013, a Beijing non-profit group launched a ‘Clean Your Plate Campaign’ on Sina Weibo, a Chinese Twitter-like microblogging site, with aims to reduce food waste. This paper examines social media users’ reactions during two periods of the first three years of the campaign. Upon examination of topic content, supporting participation was the most popular topic in January 2013 and showcasing individual achievement was the most frequently discussed topic in March 2016, with socialising as the common purpose for posting in both months. Users mentioning the campaign most in January 2013 belonged to private organisations, with posts from ordinary people becoming more predominant by March 2016. This study sheds light on the use of social media to raise public awareness regarding food waste in China. The findings will help campaigns aiming to promote food waste reductions or other social movements that use social media as a platform for citizen involvement.     

Worried about strategy implementation? Don’t overlook marketing's role

Many executives and scholars have argued that effective strategy implementation is at least as important as—if not more important than—developing a brilliant strategy. While there are several extant viewpoints regarding what is required for successful strategy implementation, perhaps the most influential perspective is that business success requires a fit between strategy and organizational architecture. Organizational architecture subsumes structural variables and capabilities. For the past 10 years, we have studied the performance implications of matching marketing's organizational architecture to four generic business strategies: Prospectors, Analyzers, Low-Cost Defenders, and Differentiated Defenders. Through six empirical studies we have identified best practice matches between these strategy types and: (1) marketing organization culture, (2) marketing strategy, (3) market strategy formation process, (4) market-focused strategic organizational behaviors, (5) marketing organization structure, and (6) marketing control systems. In this article, we bring together findings from each of these studies to provide a comprehensive overview of those marketing actions and policies that are associated with superior firm performance.     

PERSPECTIVE: first,fast, and on time: the path to success. or is it?

To be competitive, and become the industry leader, the firm needs to be fast, first, and on time, or so the story goes. Fast development cycle times, first to market, and schedule predictability are the three basic principles of new product development performance, but what does the evidence actually show? A review of current research, schedule performance data, and cycle time data shows that following these principles does not necessarily lead to success. Recent studies indicate that being first to market is not necessarily any better than being second, third, or even fifth. Several leading companies in the fast cycle time movement are rethinking their first-to-market strategy, and some are deliberately lengthening their cycle times. Finally, the correlation between schedule accuracy and business results is practically nonexistent in the product lines reviewed for this article. The evidence found while researching this article has led the authors to recast these three traditional principles into three new market-focused guiding principles: effective market introduction timing, first to mindshare, and managed responsiveness. To provide direction in applying these three principles, three types of market windows are defined: imposed, controllable, and emergent. How one approaches each of the three guiding principles is driven by which type of market window the organization is operating within, and other business characteristics, such as market position and the ability to differentiate.     

Valuing the Willingness‐to‐Pay for Sustainable Seafood: Integrated Multitrophic versus Closed Containment Aquaculture

Awareness of the environmental problems associated with conventional finfish aquaculture has stimulated interest in more sustainable production methods. For example, integrated multitrophic aquaculture (IMTA) combines the culturing of fish and extractive aquaculture species at one site to simulate a balanced natural system. In contrast, closed containment aquaculture (CCA) separates farming from the natural marine environment using closed water tanks on land or in water. We explore consumer preferences for salmon produced with IMTA or CCA rather than conventional technology and pose two questions: how aware of IMTA and CCA are salmon consumers on the U.S. West Coast and what are they willing to pay for salmon produced with these methods? Using a discrete choice experiment, we estimate marginal willingness‐to‐pay of 39.0% and 15.7% for IMTA and CCA, respectively, as a premium added to the price of conventionally farmed Atlantic salmon. Results using latent class analysis show that consumers with a strong preference for wild salmon have high marginal values for farmed salmon produced with IMTA or CCA, but the average consumer from this group would be unlikely to purchase it. Overall, 44.3% and 16.2% of the respondents preferred IMTA or CCA to conventional salmon farming, respectively, and IMTA was preferred to CCA when respondents were asked to choose one. La sensibilisation aux problèmes environnementaux liés à l’élevage de poissons classique suscite un intérêt pour des méthodes de production plus durables. Par exemple, l'aquaculture multitrophique intégrée (AMTI) combine l’élevage de poissons et d'espèces d'extraction sur un même site afin d'imiter un écosystème naturel équilibré. En revanche, l'aquaculture en parc clos (APC) consiste en un élevage hors du milieu marin naturel à l'aide de réservoirs étanches installés sur le sol ou dans l'eau. Dans la présente étude, nous avons analysé les préférences des consommateurs pour le saumon issu de l'AMTI ou de l'APC et celui issu de l’élevage classique. Nous nous sommes également posé deux questions : À quel point les consommateurs de saumon de la côte Ouest des États‐Unis connaissent‐ils l'AMTI et l'APC, et combien sont‐ils prêts à payer pour obtenir du saumon issu de ces méthodes de production? À l'aide de la méthode des choix discrets, nous avons obtenu un consentement à payer marginal de 39,0 % pour l'AMTI et de 15,7 % pour l'APC, de plus que le prix du saumon de l'Atlantique issu de l’élevage classique. Les résultats de l'analyse des classes latentes ont montré que les consommateurs qui affichaient une préférence marquée pour le saumon sauvage avaient des valeurs marginales élevées pour le saumon issu de l'AMTI ou de l'APC, mais qu'il était peu probable que le consommateur moyen de ce groupe en achète. Dans l'ensemble, les répondants ont indiqué préférer le saumon issu de l'AMTI ou de l'APC (44,3 % et 16,3 % respectivement) au saumon issu de l’élevage classique. De plus, s'ils avaient à choisir entre le saumon issu de l'AMTI ou de l'APC, ils choisiraient le saumon issu de l'AMTI.     

Extreme risk spillover network: application to financial institutions

Using the CAViaR tool to estimate the value-at-risk (VaR) and the Granger causality risk test to quantify extreme risk spillovers, we propose an extreme risk spillover network for analysing the interconnectedness across financial institutions. We construct extreme risk spillover networks at 1% and 5% risk levels (which we denote 1% and 5% VaR networks) based on the daily returns of 84 publicly listed financial institutions from four sectors—banks, diversified financials, insurance and real estate—during the period 2006–2015. We find that extreme risk spillover networks have a time-lag effect. Both the static and dynamic networks show that on average the real estate and bank sectors are net senders of extreme risk spillovers and the insurance and diversified financials sectors are net recipients, which coheres with the evidence from the recent global financial crisis. The networks during the 2008–2009 financial crisis and the European sovereign debt crisis exhibited distinctive topological features that differed from those in tranquil periods. Our approach supplies new information on the interconnectedness across financial agents that will prove valuable not only to investors and hedge fund managers, but also to regulators and policy-makers.