A new necessary condition for implementation in iteratively undominated strategies

We uncover a new necessary condition for implementation in iteratively undominated strategies by mechanisms that satisfy the “best element property” where for each agent, there exists a strategy profile that gives him the highest payoff in the mechanism. This class includes finite and regular mechanisms. We conclude that either the quasilinearity-like assumptions of available sufficiency results cannot be completely dispensed with or some mechanisms that do not satisfy the best element property must be employed. We term the condition “restricted deception-proofness.” It requires that, in environments with identical preferences, the social choice function be immune to all deceptions, making it then stronger than incentive compatibility. In some environments the conditions for (exact or approximate) implementation by mechanisms satisfying the best element property are more restrictive than previously thought.     

The proposal and validity of the Customer Science Dual System--The key to corporate management innovation

A future successful global marketer must develop an excellent quality marketing system that impresses users and continuously provides excellent, quality products in a timely manner through corporate management. In this study, the authors proposed the Customer Science Dual System, CS-TMNS ＆ CS-SDSM. For the purpose of innovating strategic product development systems so called Customer Value Creative System, the Total Marketing Network System, CS-TMNS is established. In addition, for intelligent utilization of the established CS-TMNS, statistical science is incorporated so as to create the Strategic Designing Support Methods, CS-SDSM, as a new approach to the creation of wants that are vital to product planning and designing. Concretely, the author will also introduce the effectiveness of this system that reflects latent customer needs through scientific marketing application examples via Automobile Design Profile for the Younger Generation.     

The Policy Function of a Discrete-Choice Problem is a Random Number Generator

This paper studies a life-cycle model in which the consumption good is assumed to be indivisible. This assumption requires the number of units of the good purchased in each period to be an integer. It is shown that, if the discount factor (β) is sufficiently small, the policy function takes the form of a pseudo-random number generator or, more precisely, a linear congruential generator. It is also shown that optimal plans are almost always asymptotically non-periodic regardless of the discount factor. Various numerical examples of the value function and the policy function are provided.
JEL Classification Numbers: C61, D91, E32.     

Welfare effects of bubbles in an endogenous growth model

This paper examines welfare effects of asset bubbles in an endogenous growth model with overlapping generations. In our model, a steady-state equilibrium with bubbles exists only if the presence of bubbles raises the welfare level of the initial generation. Bubbles can be beneficial to generations born at relatively early dates, whereas they reduce the welfare level of sufficiently distant future generations. Increasing the rate of supply of the useless asset improves the lifetime utilities of future generations.     

Strategy transformation through strategic innovation capability – a case study of Fanuc

This paper presents a theoretical framework under which large companies should be able to bring about strategy transformation. First, we present the concept of ‘strategic innovation capability’, a corporate system capability to achieve corporate strategy transformation by strategic innovation. Then, we consider strategic innovation capability by comparing it with previous theories (dynamic capability, major innovation, dynamic capability, breakthrough innovation capability). Second, we present the case example of strategy transformation at Fanuc, a company that holds the top global share in the numerical control (NC) market. In this case study research, we consider and analyze historically how the company aimed for new creativity in the NC market, developed innovative NC technology for the machine tool market, and used that technology energetically for commercialized products. From the strategic innovation capability framework, the core theory of this paper, we also analyze and consider how top management made conscious efforts to form a new development organization within the company, and the processes involved in achieving strategy transformation to establish competitive superiority in this field. Finally, we discuss the implications drawn from this case analysis, and the issues for future research.     

A Comparison of American and Japanese Work Practices: Skill Formation, Communications, and Conflict Resolution

This article examines whether American work practices are becoming more similar to Japanese work practices with regard to skill formation, communications, and conflict resolution. I find that separated skills, self-managing teams, and the dual conflict settlement procedure prevalent in three American unionized plants contrast with the practices found in three Japanese unionized plants, where integrated skills, middle-up-down decision making led by assistant and first-line supervisors, and an informal and one-channel conflict settlement procedure are used.     

Defense and Welfare Under Rivalry

Two small countries facing a constant probability of war with each other import arms for consumption goods from the rest of the world. The defense good, produced by combining arms and army, is a public good. The reaction curve depicting the optimal supply of the defense good turns out to be backward-bending. Nevertheless, at least one of the reaction curves is positively sloped at the unique Nash equilibrium. Several comparative statics results are derived. For example, if one country's reaction curve is negatively sloped, military aid to the rival leads to a decline in its optimal supply of the defense good.     

The effects of fishery harbor-based brands on the brand equity of shore fish: An empirical study of branded mackerel in Japan

In Japan, some fishery cooperative associations use their fishery harbor names as a brand to differentiate their own shore fish. Most notable is the branding of mackerel. In this paper, we analyze the effects of branding using a discrete/continuous model. The results are as follows. First, there is first-mover advantage in the branding of mackerel. For instance, unlike other brands of mackerel, Seki-saba as the pioneering brand can increase its brand equity. Second, other brands have opposing effects that increase and decrease the brand equity of the pioneering brand. We find the former is strongest in the early stages of fishery branding when there are few competing brands of mackerel, while the latter becomes stronger in later stages when many other brands emerge.