Nomic necessity in marketing theory: The issue of counterfactual conditionals

One of the well-established characteristics of lawlike generalizations is nomic necessity, i.e., the quality of universality or inevitability. In turn, the ability to support so-called “counterfactual conditionals” is considered the hallmark of lawlike statements which possess nomic necessity. Unfortunately, there seems to be some inconsistent interpretation of this counterfactual-support requirement, revealed even in some of the most prominent works on the subject in the field of marketing. This paper represents an attempt to clarify the situation.     

On the construction of marginal federal personal and social security tax rates in the U.S

In this article, I correct and extend my earlier series on marginal federal personal income tax rates. I also construct a measure of the marginal Social Security tax rate and add this to the income tax rate to obtain a measure of the effective marginal tax rate on income due to federal taxes. Finally, I compare my series on marginal income tax rates and its method of construction with those of Barro and Sahasakul.     

Trade liberalization, outsourcing, and the hold-up problem

This paper shows that, in a bilateral relationship where a foreign supplier has to make a relationship-specific investment but cannot enforce a complete contract, the standard hold-up problem of underinvestment is aggravated when trade incurs a tariff. In this context, we identify two new channels through which trade liberalization enhances international trade. First, lower tariffs increase the incentives of foreign suppliers to undertake cost-reducing investments. Second, lower tariffs may prompt vertical multinational integration. These indirect effects imply that responses of trade volumes to trade liberalization are greater than standard trade models suggest and help explain current trends toward foreign outsourcing and intra-firm trade.     

Factors influencing the profitability of pharmaceutical research

The output from a pharmaceutical research project is a stream of candidate drugs which may be submitted to clinical trials. The value of this output depends on the characteristics of the stochastic process generating this stream, and on the extent to which the candidate drugs are chemically similar to each other. This paper explores the impact of these factors on profitability, and on the policy which should be followed for selecting candidate drugs.     

Problem based learning: application to technology education in three countries

An increasing variety of professional educational and training disciplines are now problem based (eg, medicine, nursing, engineering, community health), and they may have a corresponding variety of educational objectives. However, they all have in common the use of problems in the instructional sequence. The problems may be as diverse as a mechanical predicament, an unexplained phenomena, or patient symptoms. Technology education in secondary schools is undergoing a period of significant change in many countries. It is therefore imperative that technology teacher education adopt not only the technologies that have been identified as being important, but also incorporate appropriate methodologies for the instruction of these technologies. PBL offers a number of relevant features to technology education and it is because of these that the project outlined in this paper has been developed.     

PROMOTION OF PRIMARY PRODUCTS — A VIEW FROM THE CLOISTER*

This paper is a discourse on how promotion may contribute to the efficiency of consumption. The view is taken that, through its addition to the quantity of search with respect to product characteristics, promotion may enable consumers to allocate their expenditures more efficiently and yield additional revenue to producers of the promoted product. The central plea is for consistency in the identification of promotion objectives, the implementation of the promotion program and monitoring of the outcome. In an idiosyncratic way, the promotion objectives are framed as being related to price and income elasticities and it is argued that promotional outcomes should be monitored in terms of these elasticities. Supply shifts may complement promotion strategies to the advantage or disadvantage of producers and the outcomes in terms of producer surplus are examined for particular promotion strategies and shifts in linear supply functions.     

The paradox of strategic controls

This paper reviews the literature on strategic controls. It summarizes the main theoretical arguments that have been put forward for establishing strategic control systems, and contrasts these arguments with evidence that suggests that few companies in fact have a strategic control system in place. The paper then identifies some of the difficulties that may be associated with establishing a strategic control system, points up issues that require further empirical research, and suggests a framework for exploring a contingency theory concerning the sorts of businesses in which strategic control systems would be most and least valuable.     

Exact inference in the inequality constrained normal linear regression model

Inference in the inequality constrained normal linear regression model is approached as a problem in Bayesian inference, using a prior that is the product of a conventional uninformative distribution and an indicator function representing the inequality constraints. The posterior distribution is calculated using Monte Carlo numerical integration, which leads directly to the evaluation of expected values of functions of interest. This approach is compared with others that have been proposed. Three empirical examples illustrate the utility of the proposed methods using an inexpensive 32-bit microcomputer.