Development pressure and retail planning: a study of 20-year change in Cardiff,UK

This article describes and explains changes in the retail landscape of a major British city over the last 20 years. It thus serves to continue the survey of change initiated in 1989 with a comparative analysis of the retail structures of Cardiff (UK) and Charlotte (USA). The changes reviewed in the present study are shown to exemplify broad trends in UK retailing, as well as the growing influences of town planning and urban regeneration policies.     

Probabilistic selling vs. markdown selling: Price discrimination and management of demand uncertainty in retailing

Markdown selling (i.e., price reductions over the course of the selling season) is a strategy to implement price discrimination and to manage market uncertainty that has been widely adopted by retailers. This paper explores the potential advantage of introducing an additional tool to the arsenal of retailers, probabilistic selling (i.e., offering consumers a choice to buy a product that can turn out to be any item from a predetermined set of distinct items). We show that both probabilistic and markdown selling strategies serve as price discrimination tools by offering buyers an option to purchase a “damaged” good (an uncertain product under the former and delayed consumption of a product under the latter). However, the two strategies segment markets based on different types of buyer heterogeneity: buyer preference strength under probabilistic selling and buyer patience under markdown selling. Our analytical model reveals that, compared with markdown selling, probabilistic selling can (1) improve margin management by increasing revenue from full-price sales and reducing the magnitude of discounts; and (2) improve inventory utilization by reducing stockouts and the amount of excess inventory. We identify the conditions required for probabilistic selling to be more profitable than markdown selling.     

A Canadian Response to the Pursuit of Global Sustainability Reporting Standards*

As business, government, and society continue to emphasize the importance of sustainability—both of individual organizations and of the natural world—accounting standard-setting bodies want to be part of the process. In September 2020, in response to “urgent and growing demand” for more “consistent and comparable” sustainability reporting, the IFRS Foundation (the Foundation) released for comment a Consultation Paper on Sustainability Reporting. In the paper, the Foundation proposed the creation of a Sustainability Standards Board (SSB), which it would oversee alongside the IASB. The SSB would become, de facto, the global sustainability reporting standard setter. The Foundation received 577 responses to its proposal. These responses came from around the world and from a wide range of stakeholders. Thirty-eight of the responses came from Canada. This study profiles the Canadian responses, contrasting them with the wider set of worldwide responses. Some uniquely Canadian features include user responses from a large number of pension funds and preparer responses solely from the energy sector. There was also a significant response from the Canadian accounting community, including from the full set of Canadian standard-setting organizations. Five auditors general also responded. Overall, Canadian respondents supported both globalized sustainability reporting standards and the Foundation's creation of the SSB. This support aligns Canada's response with the worldwide response.     

The amenity value of natural views

We estimate nonmarket values for natural views in an urban setting. These views contain the aesthetics of natural areas commonly found in public parks and open space, and offer an aspect of property valuation that previous research is unable to disentangle from proximity to parks and open space. We incorporate machine learning techniques on Google Street View images to identify natural views in an urban setting. We find positive capitalization rates associated with household views of park-like properties. Estimates are robust to a variety of specifications, including models that are identified off of new developments on neighboring properties and falsification tests that help to rule out the effect of a broader neighborhood environment. From a policy perspective, our results inform as to the optimal size, location, and shape of open space. Furthermore, machine learning methods used in the construction of our view variable provide a potentially powerful tool for other nonmarket valuation studies.     

When Appraisers Go Low,Contracts Go Lower: The Impact of Expert Opinions on Transaction Prices

The Journal of Real Estate Finance and Economics - Using home purchase loan application data, we study buyer responses to the uncommon occurrence of the appraised value coming in below the contract...     

Two steps forward,one step back? Quantifying the pecuniary costs of debt account aversion and the debt snowball

The interest-minimizing strategy to paying multiple debts is to make all minimum payments and allocate remaining funds to the debt with the highest interest rate. However, cognitive biases such as debt account aversion and financial advisors encourage borrowers to instead allocate remaining funds to debts with lower outstanding balances, a strategy known as the Debt Snowball. The author uses the 2016 Survey of Consumer Finances to quantify the pecuniary costs for American households of following the Debt Snowball and finds that the average household pays an additional 1.8%–4.3% in interest, leading to an aggregate transfer of wealth from borrowers to lenders of between $46.2 and $53.9 billion in excess of what would occur if borrowers instead minimized interest accrual. Due to differences in household debt structure, the Debt Snowball strategy imposes greater pecuniary penalties on low-income households, on Black households, and on households with more initial debts.