The Role of Product‐Premium Fit in Determining the Effectiveness of Hedonic and Utilitarian Premiums

This research explores how the effectiveness of hedonic and utilitarian premiums is contingent with the degree of product‐premium fit. It is proposed that the effectiveness of utilitarian/hedonic premiums is higher at a high/low degree of fit between the premium and the focal product. Specifically, a series of three experimental studies were conducted. Consistent with expectations, Study 1 found that at high product‐premium fit utilitarian premiums were preferred over hedonic ones, while Study 2 revealed that hedonic ones were preferred at a low‐fit condition. To further validate these preliminary results, Study 3 developed a full factorial experimental design wherein the interaction effect between the nature of the premium and product‐premium fit on consumers’ liking, purchase intention and positive word‐of‐mouth was evaluated. This study confirmed the existence of a significant interaction effect and the direction of the simple effects was consistent with findings from Studies 1 and 2. However, the differences were only significant at a low‐fit condition.     

Spanish basic emotion words are consistently ordered

The hypothesis that there would be a consistently ordered sequence of basic emotion words in Spanish—a phenomenal claim—has been strongly corroborated on 103,184 emotion terms from a representative corpus of 188,975,000. The observed sequence of miedo, pena, sorpresa, alegría, rabia, desprecio and asco—linguistic exemplars of emotion “families” corresponding to fear, sadness, surprise, happiness, anger, contempt and disgust—is highly consistent diachronically (through current and modern Spanish), and synchronically (through various countries, among them—Colombia, Cuba, Chile, Mexico, Nicaragua, Peru, Puerto Rico, Spain, USA and Venezuela). These results converge with evidence of emotion universals from cognitive psychology and neuroscience, as well as with predictions from functional approaches. By analogy with the colour-perception domain, it is proposed that this sequence be hypothesized as a ranking of psychological salience.     

Tyre price dispersion across retail outlets in the UK

We investigate price dispersion in a retail market (car tyres) characterised by outlets each selling a range of products, some of which are manufactured by their owners. Consumers face substantial price dispersion across outlets even for very tightly defined products. We show that this price dispersion has systematic components relating to retailer-manufacturer interactions. One specific result is that chains owned by manufacturers sell other manufacturers' tyres on average nearly 20% more expensively than do independent stores and over 11% more expensively than their own equivalent branded product.     

NONPARAMETRIC AND SEMIPARAMETRIC METHODS FOR ECONOMIC RESEARCH

Abstract. Developments in the vast and growing literatures on nonparametric and semiparametric statistical estimation are reviewed. The emphasis is on useful methodology rather than statistical properties for their own sake. Some empirical applications to economic data are described. The paper deals separately with nonparametric density estimation, nonparametric regression estimation, and estimation of semiparametric models.     

Organization, programme and structure: an analysis of the Chinese innovation policy framework

The paper first identifies the stakeholders involved in the design and implementation of China's innovation policy and compares them with different government systems in selected Organization for Economic Co-operation and Development (OECD) countries. In order to disclose the relative strength and weaknesses inside China's innovation policy framework, we proceed to utilize policy practices in the OECD countries as a guideline to examine China's innovation policy in five categories: reform in the public S&T institutions, financial policy, business innovation support structure, human resource policy and legislative actions. Subsequently, several weak components of the Chinese innovation policy framework are identified and two of them are selected for further analysis: education and human resource policy, and protection of Intellectual Property Rights (IPR). Finally, the paper provides some priorities and possible actions for future innovation policy developments in China.     

Global mindset and the internationalization of small firms: The importance of the characteristics of entrepreneurs

Despite being a relatively new concept, the importance of the global mindset is already well-documented. So far research has primarily focused on multinational companies and therefore the operationalization of the concept is still a work in progress. Recognizing the importance of entrepreneurs in small companies, yet mindful of the gaps that exist, this paper addresses the factors that constitute the global mindset and their influence on the internationalization of small Portuguese companies. Using information-processing theory through a quantitative, survey-based study and Structural Equation Modeling (SEM), the results show the importance of the characteristics of both entrepreneurs and firms in explaining the global mindset, and confirm the impact they have on internationalization behavior. The entrepreneur??s level of education, their satisfaction with company performance in the domestic market and the potential for growth in the domestic market all affect the global mindset model. The conclusions are useful for entrepreneurs and national authorities aiming to successfully implement internationalization practices, given the role of the global mindset in exploring global business opportunities and in the global success of companies. Replication of the research in different contexts is essential for the wider generalization of the results.     

Book Reviews

Louis Baeck. The Mediterranean Tradition in Economic Thought. London and New York: Routledge, 1994. Pp. IX, 241. £40. ISBN 0–415–09301–5.

Vivienne Brown. Adam Smith's Discourse. Canonicity, Commerce and Conscience. London and New York: Routledge, 1994. Pp. 243. £13.99. ISBN 0–415–09593.

Peter Groenewegen (ed.). Feminism and Political Economy in Victorian England. Aldershot: Edward Elgar, 1994. Pp. 208. £39.95. ISBN 1–85278–928‐X.

Terence Hutchison. The Uses and Abuses of Economics. Contentious Essays on History and Method. London and New York: Roudedge, 1994. Pp. XIII, 314. £45. ISBN 0–415–09404–6.

Jan Keppler. Monopolistic Competition Theory. Origins, Results, and Implications. Baltimore and London: The Johns Hopkins University Press, 1994. Pp. x, 220. US$45. ISBN 0–8018–4813‐X.

Lars Magnusson (ed.). Evolutionary and Neo‐Schumpeterian Approaches to Economics. Boston, Dordrecht, London: Kluwer Academic Publishers, 1994. Pp. VIII, 326. £74.95. ISBN 0–7923–9385–6.

Alessandro Marzola and Francesco Silva (eds). John Maynard Keynes. Language and Method. Aldershof. Edward Elgar, 1994. Pp. XY 247. £39.95 ISBN 1–85278–923–9.

Ferdinando Meacci. Luigi Einaudi e i Principi del Capitate. Turin: Giappichelli, 1993. Pp. x, 176. IL. 28,000. ISBN 88–348–3093–8.

Gerald M. Meier (ed.). From Classical Economics to Development Economics. New York: St Martin's Press, 1994. Pp. xiii, 262. US$45. ISBN 0–312–12033–8.

Takashi Negishi. The History of Economics. The Collected Essays of Takashi Negishi, vol. 2. Aldershot: Edward Elgar, 1994. Pp. XXIV, 242. £45. ISBN 1–85278–938–7.

Cosimo Perrota and Vitantonio Gioia (eds). Where is Economics Going? Historical Viewpoints. Lecce: Università degli Studi di Lecce and Congedo Editore, 1994. Pp. 131. Price not indicated. ISBN 88–808–6079–8.

Warren J. Samuels, Jeff Biddle and Thomas W. Patchak‐Schuster. Economic Thought and Discourse in the 20th Century. Aldershot: Edward Elgar, 1993. Pp. x, 288. £45. ISBN 1–85278–724–4.

Mario Sebastiani. Kalecki and Unemployment Equilibrium. London: Macmillan, 1994. Pp. 213, ISBN 0–312–10585–1

John Vint. Capital and Wages. A Lakatosian History of the Wages Fund Doctrine. Aldershot: Edward Elgar, 1994. Pp. x, 278. £45. ISBN 1–85278–864‐X.     

Application of factor models for the identification of countries sharing international reference-cycles

Using the methodology developed in Stock and Watson (2002a), this paper proposes to exploit the information that contains the factor loading to identify the countries sharing common factors. The proposal is illustrated by analyzing the relation with the international reference-cycle of a large sample of advanced countries from 1950 until 2006.     

Financial Development: Maturing and Emerging Policy Issues

In recent decades, financial development policies in emergingmarket economies have been shaped by a fundamental shift towardmarket-based financial systems and the lessons from financialcrises. Today, there is consensus that financial developmentdepends on financial stability and convergence toward internationalstandards. While the debate on some issues has matured, policythinking in other areas is changing, fueled by recent experiences.This article analyzes the evolution of policy thinking on financialdevelopment and discusses three areas that are important toachieving deeper financial systems: stock market development,small- and medium-size enterprise financing, and defined-contributionpension systems. The main emerging issues in these areas areillustrated using recent experiences in Latin America. The articleconcludes that there is a need to take a fresh look at the evidence,improve diagnoses, and revisit expectations. JEL codes: F36, G15, G18, G20