Separation in Cointegrated Systems and Persistent-Transitory Decompositions

The notion of separation in cointegrated systems helps identifying possible sub-system structures that may reduce the complexity of larger systems by yielding a more parsimonious representation of the times series. In this paper we demonstrate that although the subsystem cointegration analysis in such systems can be conducted in case of both completely and partially separated systems, the dual approach, i.e. calculation of the common stochastic trends, may turn out to yield properties of the trends that differ depending upon the type of separation under consideration. In particular, we demonstrate how persistent-transitory (P-T) decompositions and long- and short-memory factorizations of a multivariate time series will interact across systems when considering the presence (or absence) of different types of separation. Generalizations to non-linear error correction models are briefly discussed.     

Price dynamics under imperfect information

The paper considers the pricing decision of a monopolist firm having demand and costs exposed to nominal and real shocks which include both permanent and transitory changes. The firm obtains information through both price and quantity signals and the price equation is found by use of a filtering technique. It is shown that imperfect information implies nominal price smoothing where the price adjusts only partially relative to the past price by incorporating new information observed through price and quantity signals.     

Organizational interfaces and innovation: The challenge of integrating supplier knowledge in LEGO systems

Suppliers have become increasingly important as partners in firms' innovation efforts. Reaping potential collaboration benefits is complex due to challenges in combining internal and external knowledge. The paper explores how various types of organizational interfaces between buyer and supplier create both opportunities and problems for their joint actions. The paper is based on a longitudinal case study of attempts to develop an innovative packaging solution for the toy manufacturer LEGO systems. The study shows that buying firms need to carefully analyse what form of organizational interface access to prioritize since each type offers its specific possibilities and drawbacks. Furthermore, the feasibility of organizational interfaces may change over time due to mutual organizational learning.     

Familial Risk for Exceptional Longevity

One of the most glaring deficiencies in the current assessment of mortality risk is the lack of information concerning the impact of familial longevity. In this article we update estimates of sibling relative risk of living to extreme ages using data from more than 1700 sibships, and we begin to examine the trend for heritability for different birth-year cohorts. We also build a network model that can be used to compute the increased chance for exceptional longevity of a subject, conditional on his or her family history of longevity. The network includes familial longevity from three generations and can be used to understand the effects of paternal and maternal longevity on an individual's chance to live to an extreme age.     

Value,Values, and Valuation: The Marketization of Charitable Foundation Impact Investing

Journal of Business Ethics - Based on an abductive analytic study, we examine financial and social value incorporation in the multi-valued market of impact investing. This paper draws on interviews...     

Animal Welfare and Eggs – Cheap Talk or Money on the Counter?

Our estimate revealed willingness to pay for animal welfare using a panel mixed logit model. We utilise a unique household level panel, combining real purchases with survey data on perceived public and private good attributes of different types of eggs. We estimate willingness to pay for organic eggs controlling for trust in a positive connection between the public good animal welfare and the organic label and the private good food safety also connected to the label. Our results suggest that in the real world, animal welfare plays a minor role in the demand for agricultural products.     

Resident Attitudes Towards Mountain Second-Home Tourism Development in Norway: The Effects of Environmental Attitudes

Rural tourism, especially through second-home development is increasing rapidly in much of Europe, the USA and Canada offering new economic opportunities for local communities, but also challenges related to environmental impacts and differing perceptions within communities about appropriate development paths. This study examines associations between the environmental attitudes of residents and attitudes towards second-home development in two regions in Southern Norway, with community attachment and economic dependency as additional predictors. Ecocentrism was found to have a strong negative effect on attitudes towards tourism development, while, in contrast to previous findings, community attachment did not have significant effects. Economic dependency is significantly related to attitudes towards development; both ecocentrism and economic dependency are mediated by other variables, such as expected impacts and benefits. The findings are important in planning to reduce potential conflicts.     

Dual channels of distribution: a transaction cost analysis and propositions

The existence of dual or multiple channels of distribution consisting of independent distributors in combination with producer-owned distribution channels has been documented by several researchers, and some of them find indications that dual or multiple channels of distribution are likely to become more widespread in the future. This article briefly reviews the empirical studies on and theorizing about dual channels of distribution. Then mainstream transaction cost theory is explained and used to advance eleven propositions delimiting when dual channels of distribution are efficient. Most of the propositions are explained by differences in transaction-specific investments, uncertainty, transaction frequency and the institutional environment. The rest of the propositions are based on synergistic explanations such as dual systems induce competition, they result in higher powered incentives, and they provide better information.     

Extremely thin models in print ads: The dark sides

To appeal to consumers as social beings, advertisers include social settings and human images in commercial messages. Extant empirical research shows that thin models are perceived as more attractive and that the use of attractive models results in higher ad effectiveness. However, this study offers empirical evidence of ‘dark sides’ of extremely thin models, such that they harm advertising performance. The negative effects of extremely thin models stem from their influence on consumers' psychological well-being, as well as their ethical judgements of the advertisement. Respondents in this study also regard an extremely thin model as less attractive than a more average model. These results suggest that organizations should reconsider the portrayal of extremely thin models in their promotional messages and, more generally, consider consumer ethics when developing marketing communication messages.