Integrating consumers’ motives with suppliers’ solutions to combat Shanzhai: A phenomenon beyond counterfeit

Imitation goods are widely spread throughout the global business world. Shanzhai imitation (

) represents a type of imitation that mimics the original brand through surface or functional similarities but often provides enhanced or innovative features adapted to local market needs. Although both practitioners and academics have studied and provided solutions to combat counterfeits, solutions for original brand manufacturers to address threats from Shanzhai products are lacking. In this article, we first differentiate Shanzhai products from counterfeits. Using a mixed-method approach that combines interviews and laboratory experiment results, we then identify social, individual, functional, and financial (SIFF) factors as driving forces behind consumers’ purchasing of Shanzhai products. Shanzhai buyers place more weight on functional value and price/quality ratio than do counterfeit buyers, who in turn favor social value and materialism more than Shanzhai buyers. Finally, we provide several recommendations to original manufacturers from both the demand and supply sides.     

LA GOUVERNANCE PAR L’EVALUATION. LES QUASI‐MARCHES DANS LES SERVICES A DOMICILE

RESUME 1 : Cet article propose une étude du rôle croissant que joue l’évaluation dans la gouvernance des services à domicile en Europe. L’introduction de quasi‐marchés dans plusieurs pays européens va de pair avec un processus d’autonomisation de la fonction d’évaluation qui devient un véritable outil de régulation de la concurrence. Une analyse comparée des situations en Belgique, France et Royaume‐Uni, tant de la demande que de l’offre de services, met en évidence les tensions récurrentes dans les objectifs de l’évaluation (qualité des services, maîtrise des budgets sociaux, création d’emploi), la faible prise en compte de la qualité de l’emploi ainsi que les limites des dispositifs standardisés d’évaluation au regard de la rhétorique du libre choix de l’usager (consommateur).     

DOES THE MISSION OF PROVIDERS MATTER ON A QUASI‐MARKET? THE CASE OF THE BELGIAN ‘SERVICE VOUCHER’ SCHEME

ABSTRACT 1 : In 2001, the Belgian government introduced a ‘service voucher’ scheme in the field of domestic (housework) services, following a quasi‐market mechanism which fosters competition between providers of different types as regards sector (for‐profit, public, third sector) and mission (seeking profits, home care provision to vulnerable groups and work integration of the unemployed). Empirical evidence suggests that third sector organizations focusing on a social mission recognized by a tutelary regulation are the best performing with regards to the quality of jobs and service organization, leading to a better ‘triangulation’ of the service relationship. On the other hand, for‐profit providers, especially temporary work agencies, seem to favour their capacity of adaptation to the desiderata of their clients and costs’ minimization to the detriment of the quality of jobs which are made as flexible as possible.     

Endogenous market structure and foreign market entry

Models dealing with cross-border acquisitions versus greenfield investment usually assume that the entry of a foreign firm into a market has effects on the outputs of all domestic firms in that market, but exit or entry of local firms is not considered. The purpose of this paper is to re-examine the acquisition versus greenfield versus exporting question under fixed versus free entry assumptions for local firms. Our finding is that greenfield entry and exporting options are more attractive relative to acquisition when the local market structure adjusts to foreign entry through local entry or exit than when it is fixed. With respect to welfare in the host economy, existing theory models and policy discussions maintain that the effects of greenfield versus acquisition entry differ substantially. We show that under free entry and exit, there is no difference between the two for consumer surplus, but acquisition improves welfare a little through rent extraction by the local acquired firm. Thus the existing conventional wisdom may be leading to inappropriate policy choices by host governments.     

A General Procedure to Recover the Marginal Products of a Cost Minimizing Firm

Inthis paper we develop a new method, based on generalized inverse,to recover the first derivatives of the production function.This allows us to retrieve returns to scale, technological progressand, in a dynamic setting, a measure of the adjustment cost.The method is general and systematic and it applies in caseswhere the traditional method does not. It is especially relevantwhen examining dynamic models or regulated firms.     

Integrating art as a trans‐boundary element in a radical innovation framework

Companies have learned that radical innovations (RIs) are a prerequisite to grow organically. However, companies struggle to identify and introduce RIs, as their inherent high uncertainties and novelty challenge established organisations and management routines. To address the first challenge, companies need to take a holistic approach and design a trans‐boundary environment of creativity, trans‐disciplinary and entrepreneurial spirit. This environment attracts and retains visionary people, fosters generation of new opportunities and cultivates adaptability. By adapting evaluation metrics for RI, setting up flexible processes, and promoting trans‐disciplinary exchange, the second challenge can be addressed. Increased research has concentrated on several aspects of RI lately, but so far a combining framework is missing. Our paper bridges this gap by developing an improved theoretical framework, enhancing the existing literature and introducing art as a method to advance trans‐disciplinary interchange. In a case‐study approach, we have applied our framework to the research and development department of Vodafone Research and Development, Germany, as they integrate art methodically in their research and development process. Analysing their RI capabilities, we identify the trans‐disciplinary exchange with artists as a novel initiator and driver of RI, which has not yet been adequately considered.     

Perspectives on the South African Responsible Lending Regime and the Duty to Conduct Pre‐agreement Assessment as a Responsible Lending Practice

In the 2001 INSOL International Consumer Debt Report: Report of Findings and Recommendations, the view was held that the solution to overspending and over‐indebtedness is inter alia to be found in the idea that prevention is better than cure. Ex ante responsible lending practices as preventative measures to avoid reckless credit granting and over‐indebtedness are arguably more important tools in establishing a healthy credit market than ex post measures. The focus of this contribution, is therefore, to provide a detailed overview of the South African reckless credit regime as a debt‐ prevention measure aimed at promoting responsible lending, with specific focus on the aspect of pre‐agreement assessment as a core mechanism to avoid reckless credit granting and over‐indebtedness. The main features of the reckless credit regime are highlighted, and afterwards, a detailed exposition of the evolution and extensive recent development of the pre‐agreement assessment component in South Africa is undertaken. Finally, observations are made regarding the South African reckless regime in general and with regard to affordability assessment specifically and its ability, benchmarked against the essential features of a responsible lending regime as advocated by Wilson in the book ‘International responses to issues of credit and over‐indebtedness in the wake of crisis’, to promote responsible lending. The conclusion is reached that benchmarked against the four characteristics of an effective responsible lending regime as identified by Wilson, it is apparent that the South African reckless lending regime is no ‘toothless tiger’, and that it attaches the necessary amount of significance to the credit provider's duty to take reasonable steps to do a proper pre‐agreement assessment in order to avoid reckless credit granting. Copyright © 2015 INSOL International and John Wiley & Sons, Ltd.     

Delta-hedging correlation risk?

While the Gaussian copula model is commonly used as a static quotation device for CDO tranches, its use for hedging is questionable. In particular, the spread delta computed from the Gaussian copula model assumes constant base correlations, whereas we show that the correlations are dynamic and correlated to the index spread. It might therefore be expected that a dynamic model of credit risk, which is able to capture the dependence between the base correlations and the index spread, will have better hedging performances. In this paper, we compare delta hedging of spread risk based on the Gaussian copula model, to the implementation of jump-to-default ratio computed from the dynamic local intensity model. Theoretical and empirical analysis are illustrated by using the market data in both before and after the subprime crisis. We observe that delta hedging of spread risk outperforms the implementation of jump-to-default ratio in the pre-crisis period associated with CDX.NA.IG series 5, and the two strategies have comparable performance for crisis period associated with CDX.NA.IG series 9 and 10. This shows that, although the local intensity model is a dynamic model, it is not sufficient to explain the joint dynamic of the index spread and the base correlations, and a richer dynamic model is required to obtain better hedging results. Moreover, although different specifications of the local intensity can be fitted to the market data equally well, their hedging results can be significant different. This reveals substantial model risk when hedging CDO tranches.     

Rentenversicherung, Bev?lkerungsentwicklung und Kapitalmarktrendite – Eine Simulationsrechnung

How can the pension schemes be sustainably financed? This is an important issue particularly with regard to the demographic changes in many industrialized countries but also in other emerging economies such as China and India. In this paper, we use a macroeconomic model of overlapping generations to analyze the impacts of the demographic changes as well as the interactions between pension system, bond and stock markets. Furthermore, we examine how the pension system influences the distribution of wealth, consumption and saving within generations. We found out that an aging population will cause a drastic decline. Moreover, we examined which impacts on individuals?? welfare demographic changes can have for an existing pay-as-you-go pension scheme. An increase of pension age combined with a decrease of the contributions seems to be the best policy. On the other hand, increases in contributions as a result of demographic changes show the highest welfare losses.