Competitive bidding and proprietary information

We consider the sale of an object by sealed-bid auction, when one bidder has private information and the others have access only to public information. The equilibria of the bidding game are determined, and it is shown that at equilibrium the informed bidder's distribution of bids is the same as the distribution of the maximum of the others' bids. The expected profit of the informed bidder is generally positive, while the other bidders have zero expected profits. The equilibrium bid distributions and the bidders' expected profits are shown to vary continuously in the parameters of the bidding game.     

Economies of scale,factor intensities and substitution: Micro estimates for Malaysia’s manufacturing industries

Zusammenfassung Skalenertr?ge, Faktorintensit?ten und Substitution: Mikro?konomische Sch?tzungen für die Verarbeitende Industrie Malaysias. In diesem Aufsatz werden Sch?tzungen von Skalenelastizit?ten und Substitutionselastizit?ten für 55 Branchen der Verarbeitenden Industrie Malaysias dargestellt und diskutiert. Skalenelastizit?ten wurden ermittelt um zu überprüfen, ob und inwieweit für ein kleines Entwicklungsland wie Malaysia die industrielle Produktions- und AuΒenhandelsstruktur durch die Faktorausstattung relativ eng begrenzt ist. Es wird gezeigt, daβ in zahlreichen Branchen zunehmende Skalenertr?ge beobachtet werden k?nnen und infolgedessen das Spektrum effizienter Produktions-und Handelsstrukturen wesentlich breiter ist, als man aufgrund der Faktorproportionentheorie erwarten würde. Die Sch?tzung der Substitutionselastizit?ten wurde durchgeführt, um Besch?ftigungs- und Verteilungswirkungen von Lohnerh?hungen zu bestimmen. Sie führt zu dem Ergebnis, daβ die Substitutionsm?glichkeiten begrenzt sind. Für Branchen, die relativ kapitalintensiv sind und eine verh?ltnism?Βig groΒe durchschnittliche Betriebsgr?βe aufweisen, ergeben sich allerdings relativ hohe Sub-stitutionselastizit?ten. Das mag jedoch lediglich ein Reflex der Tatsache sein, daβ mit zunehmender Kapitalintensit?t und Betriebsgr?Βe Arbeit verst?rkt durch Kapital substituiert wird. Geht man von einem steigenden Lohntrend aus, dann bedeutet die Beobachtung geringer Substitutionselastizit?ten (σ { 1), daΒ die Lohnerh?hungen einerseits die Besch?ftigung nur wenig reduzieren und andererseits den Anteil der Lohneinkommen an der Wertsch?pfung tendenziell erh?hen. Diese Aussage gilt jedoch nur noch mit Einschr?nkungen, wenn im Zeitablauf die Kapitalintensit?t und Betriebsgr?Βe zunimmt. Der damit einhergehende Anstieg der Substitutionselastizit?t deutet auf gr?βere negative Besch?ftigungseffekte und ungünstigere Verteilungseffekte für die abh?ngig Besch?ftigten hin.

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Résumé L’économie d’échelles, les intensités de facteur et la substitution: des micro-estimations pour les industries manufacturières de Malaysia. — Dans cet article on présente et discute des estimations des élasticités d’échelles et des élasticités de substitution pour 55 branches de l’industrie manufacturière de Malaysia. On a recherché les élasticités d’échelles afin d’examiner si et dans quelle mesure la structure de production industrielle aussi bien que la structure de commerce extérieur est relativement étroitement limitée par l’équipement de facteur pour un pays en voie de développement comme la Malaysia. On montre que dans des branches nombreuses on peut observer des rendements d’échelles croissants et que c’est pourquoi le spectre des structures de production efficaces aussi bien que des structures de commerce efficaces est considérablement plus large qu’on pourrait attendre sur la base de la théorie de production de facteurs. L’estimation des élasticités de substitution fut faite pour déterminer les effets d’emploi et de distribution des augmentations de salaires. Elle parvient au résultat que les possibilités de substitution sont limitées. Cependant il y a des élasticités de substitution relativement hautes pour les branches qui sont relativement intensives aux capitaux et qui montrent une dimension d’entreprise en moyenne relativement grande. Peut-être que cela reflète seulement le fait que la main d’oeuvre est sub-stituée par le capital en même temps avec l’intensité de capital croissante aussi bien qu’avec la dimension d’entreprise croissante. Si on suppose une tendance de salaire augmentante l’observation des élasticités de substitution petites (σ ≺ 1) veut dire que les augmentations de salaires d’une part peuvent réduire l’emploi seulement relativement faible et qu’elles, d’autre part, augmentent la quote-part des revenus salariaux à la valeur ajoutée tendanciellement. Cela on peut dire seulement sous réserve si l’intensité de capital et la dimension d’entreprise croíssent en laps de temps. La croissance de l’élasticité de substitution, résultante de cela, signale des effets d’emploi plus négatives et des effets de distribution plus défavorables pour les salariés.

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Resumen Economías de escala, intensidad de factores y sustitución: microestimaciones para la industria manufacturera de Malasia. — En este artículo se presentan y se discuten estimaciones de elasticidades de escala y elasticidades de sustitución para 55 ramas de la industria manufacturera de Malasia. Se estiman elasticidades de escala para comprobar si y en qué medida un pais peque?o como Malasia se encuentra relativamente limitado en su estructura de producción industrial y de comercio exterior por la disponibilidad de factores. Se muestra, que en numerosas ramas industriales se observan rendimientos de escala crecientes y, que en consecuencia, el espectro de estructuras de producción y de comercio eficientes es mucho más amplio de lo que se podría esperar de acuerdo a la teoía de la proporción de factores. Las estimaciones de las elasticidades de sustitución se hicieron para determinar los efectos ocupacionales y distributivos de aumentos de remuneraciones. Ellas llevan a la conclusión, que las posibilidades de sustitución son limitadas. Para aquellas ramas que son relativamente intensivas en capital y en que el tama?o promedio de las empresas es grande, las elasticidades de sustitución son relativamente altas. Esto puede ser, sin embargo, un reflejo del hecho, que con intensidad de capital y tamaf?o empresarial creciente se sustituye en forma acelerada trabajo por capital. Si se supone una tendencia creciente para las remuneraciones, la observación de elasticidades de sustitución peque?as σ ≺ 1 significa que aumentos de remuneraciones, por un lado, reducen relativamente poco la ocupación y, por el otro lado, aumentan en forma tendencial la partipación de los ingresos laborales en el valor agregado. Esta conclusión, sin embargo, tiene solamente validez limitada, si a traves del tiempo aumenta la intensidad de capital y el tama?o de las empresas. El crecimiento de la elasticidad de sustitución resultante de esta situación, signaliza efectos ocupacionales más negativos y efectos distributivos más desfavorables para los asalariados dependientes.

     

Alexander Mahr — Porträt eines Ökonomen

Ohne Zusammenfassung     

A longitudinal micro-foundational investigation into ambidextrous practices in an international alliance context–A case of a biopharma EMNE

This paper explores the development of an ambidextrous context in a rapidly growing emerging market multinational (EMNE), thus unbundling cultural and structural complexities. We use the micro-foundational lens of ambidexterity to explore and identify different processes, structures and mechanisms that underpin the development of ambidextrous practices in the EMNE. We adopt a longitudinal case study design to trace the evolution of the EMNE, which during the initial phases of its existence focused on supplying industrial enzymes and refined its technical base. In subsequent years, it exploited its technical base to emerge as a full-fledged biopharmaceutical EMNE and adopted strategic partnerships with international companies to explore new knowledge. Our novel and rich research context also provides us with insights on how this EMNE exploited its technological knowledge, whilst utilizing strategic alliances to simultaneously engage in exploratory activities. Through the micro-foundational lens of ambidexterity, we uncover the critical role played by its leadership in addressing paradoxical tensions for simultaneously managing exploitation and exploration in an international strategic alliance context.     

Using the Capital Assets Pricing Model for risk management—A tool for multinational corporation managers

In this article, using a theoretical model and empirical analysis, we show how multinational corporations (MNCs) can utilize the fundamentals of the Capital Assets Pricing Model (CAPM) to formulate a strategic risk management in a global economy. We show that MNCs with branches all over the world, specifically those that specialize in nontradable goods (e.g., McDonald's), should consider each country's beta as the appropriate measure of the relevant risk attached to the location in the country. Finally, using data from the most recent world economic crisis (the subprime crisis), we show that during a world economic crisis the loss of growth will be significantly higher in countries with higher betas, and lower in those with lower betas. © 2011 Wiley Periodicals, Inc.     

Service Failure and Recovery in a Strategic Airline Alliance Context: Interplay of Locus of Service Failure and Social Identity

ABSTRACT

There has been a dramatic increase in the past decade in the number of strategic alliances and business networks. Yet, despite these trends in the business environment, the individual firm-customer dyad has remained the contextual focus of most services marketing research (Gittell, 2002 Gittell, J. H. 2002. Relationships between service providers and their impact on customers. Journal of Service Research, 4(4): 299–311. [Crossref] , [Google Scholar]). Using a scenario study, this research investigates the effects of service failures in a strategic airline alliance setting, with a particular focus on locus of service failure and strength of social identification, on three alliance entities—a consumer's home carrier, the alliance partner airline, and the alliance. Study findings suggest that consumers' evaluations are more stable (less extreme) when the home carrier causes the service failure. In contrast, when a lesser known entity (partner airline) causes the service failure, consumers are more willing to rate that entity harshly. Furthermore, compared to weak identifiers, strong identifiers were not only more positive in their evaluation of the home carrier but also in their evaluation of the alliance, pointing to a halo effect, whereby positive evaluations of the home carrier are transferred to the alliance. Implications of study results are discussed and directions for future research provided.     

Same but Different: Chinese-American and Mainland Chinese Consumers’ Perceptions of and Behavior in a Service Failure Situation

Going beyond the traditional East/West consumer differentiation in studying service failure, this article examined the impact of acculturation, together with ethnicity of service staff and origin of a hotel brand on consumers’ perceptions and behavioral responses. The research drew on four focus groups conducted in Beijing with 34 participants, followed by an experiment for which data were collected from 451 Chinese-Americans and 464 Mainland Chinese. Results showed significant differences in perceptions and behavioral responses following a service failure between Chinese-Americans and Mainland Chinese, and among Chinese-Americans with different acculturation strategies. Implications of study findings and directions for future research are discussed.     

Motivation and involvement in adventure tourism activities: a Chinese tourists' perspective

ABSTRACT

This research aims to explore Chinese tourists' motivations and involvement in adventure tourism activities, as well as if and how personality and location affect their motivation and involvement. Using a survey that collected 252 responses, this research suggests that stimulus-avoidance and intelligence seeking are the two most important motivational forces. Results indicate that respondents would prefer overseas locations for these activities due to perceptions of greater safety and security, better service, and higher-quality facilities. Respondents who rated themselves as “open” or “closed” in personality differ regarding motivations and involvement. Practical implications are discussed, and recommendations for future research are provided.     

Deutsche Leistungsbilanzüberschüsse in der Kritik

Germany runs large current account surpluses. Recently the surplus has been higher than seven per cent of GDP. This has provoked many different criticisms. First, some argue that the euro is the main problem. Second, German wages and prices have been criticised for being too low. Third, according to some critics, German domestic demand should be higher. Fourth, current account surpluses have been assumed to be unsustainable. The article discusses all those arguments and analyses their validity.