Changes in consumer choice: Further investigation of similarity and attraction effects

Attraction and substitution effects have been shown to be important determinants of brand choice when a new brand is added to a choice set. A simple framework is proposed for predicting the effect on relative market shares when a new brand is added to the choice set in an experimental setting. The study attempts to replicate previous results concerning the relative impact of attraction and similarity and to extend empirical findings to brand attribute positionings not examined in recent research on the attraction effect. Generally, the proposed framework operates as hypothesized, and results suggest that, in some instances, a new brand may benefit substantially from the joint effects of attraction and similarity.     

SIMULTANEITY IN THE UK DAIRY SECTOR*

Because of the high degree of interdependence in the livestock sector, the endogenous variables of econometric models should be simultaneously determined. This paper describes the specification, estimation and evaluation of a model of the UK dairy sector in which the herd size, number of culls, replacement heifer price and milk price are determined simultaneously. The major policy conclusion that emerges from the model is that any attempt to increase the price of milk received by farmers via a structural change in the policy rule used to fix the price will be offset by over 50% as a result of increases in the supply of milk.     

book reviews

WOMEN FOR HIRE, A STUDY OF THE FEMALE OFFICE WORKER London School of Economics and Political Science A HANDBOOK OF INDUSTRIAL RELATIONS PRACTICE Personnel Director British Aluminium VOTES, VIRTUES AND VICES: TRADE UNION POWER THE TROJAN HORSE: UNION POWER IN BRITISH POLITICS School of Industrial & Business Studies University of Warwick WHITE COLLAR UNIONISM: THE REBELLIOUS SALARIAT Manchester Business School THE INTERNATIONAL YEARBOOK OF ORGANIZATION STUDIES Centre for European Industrial Studies University of Bath     

Assessing the solvency of the insurance industry

The article attempts to assess the ability of the insurance industry to discharge its liabilities and to settle in full the claims against it without resorting to any of the limited safety nets that exist. The article examines several indicators of the health of the industry including: (1) industry profitability, (2) the risk level of assets held, (3) the industry's capital cushion, (4) the duration match between assets and liabilities, and (5) possible agency problems induced by the operation of a safety net. In addition, other risks are considered including the escalating costs of settling claims and pressures to make insurance rates more affordable. The article concludes with a cautiously optimistic appraisal. The industry, with a few notable exceptions, is somewhat stronger than banking intermediaries. Concerns over a generalized solvency problem, such as that faced by the savings industry, appear misplaced.This research was supported by the John M. Olin Program for the Study of Economic Organization and Public Policy at Princeton University.     

Ramifications of a Flat Tax—Shifting the Burden to the Middle Class

An alternative to the current US tax system would be a flat tax. According to its supporters, the flat tax would decrease the complexity of the tax system. Opponents contend that the flat tax will shift the tax burden to the middle class. The current research tested the claim that the flat tax will shift the tax burden to the middle class by developing simulations of two flat tax proposals, the Steve Forbes Plan and the Hall and Rabushka Plan, and then examining the change in the tax burden for different income levels as compared to the current tax system. The results show that both plans shift more of the tax burden to middle income class taxpayers than under the current US tax system.

Methodological choices in work-life balance research 1987 to 2006: a critical review

This study reviewed methodological choices (sampling frames, constructs investigated and measures used) in 245 empirical work-life balance papers published in a range of discipline-based peer-reviewed journals between 1987 and 2006. Results show that work-life balance studies need to establish greater consistency between the conceptualization of constructs and the operationalization of measures. There is also scope for well-designed field experiments to establish clear causal relationships between variables. Sampling choice in previous literature is somewhat constrained and may be enhanced by targeting single and same-sex parent families, manual and lower-skilled service workers, and employees providing eldercare. Researchers should also be more transparent in providing rationales for their choices of organizations or group lists used to target respondents. The findings have significant implications for understanding, interpreting, and utilizing the contemporary work and family literature.