On the profitability of collusion in location games

In this note we take a first step towards the analysis of collusion in markets with spatial competition, focusing on the case of pure location choices. We find that collusion can only be profitable if a coalition contains more than half of all players. This result holds for location games played in k-dimensional Euclidean space as long as consumers are distributed via atomless density functions. For competition on the unit interval, unit circle, and unit square we also derive sufficient conditions for collusion to be profitable. The results have immediate implications for mergers in spatial markets.     

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Schumpeterian growth,chaos, and the formation of dissipative structures

This paper reformulates several basic ideas introduced by Joseph Schumpeter to examine the correlation between productivity growth and technological change in order to explore why American productivity growth has been sluggish for the past two decades. Convetional growth theory maintains that a primary cause of low productivity growth is inadequate capital formation, which in turn is caused by low private domestic saving. This paper borrows concepts from cybernetics, formal information theory, and chaotic dynamic systems to describe the Schumpeterian process through which innovative “new combinations” of capital goods generate wealth, productivity increases, and income growth, and which in turn cause increased savings. It describes the process through which such fundamental technological changes are diffused by entrepreneurs throughout the economy, and concludes that the fundamental causes of America's relatively weak productivity growth are to be found in policies or practices that inhibit innovation and entrepreneurship.     

When Things Go Wrong,Don't Rely on Committed Consumers: Effects of Delayed Product Launches on Brand Trust

Consumers understand product preannouncements as credible promises to bring innovations to market at a given time. However, a majority of preannounced products are introduced with some delay. This study investigates potential loss in brand trust due to delay and the role of brand commitment in this process. Building on the Commitment‐Trust Theory of Relationship Marketing, which posits trust as a crucial antecedent of the commitment construct, this study extends this common perspective and proposes an additional reversal path from commitment to trust. That is, in the case of a delayed launch, the more stable commitment should buffer a loss in brand trust, which is more fragile. In three studies, this research finds consistent evidence that consumers lose trust in brands as a result of delayed launches. Surprisingly, high brand commitment does not mitigate such losses. In contrast, a long‐term relationship with a launching brand proves to be a buffer against losses in brand trust. Different operationalizations of brand commitment in laboratory and field experiments with brands from different product categories contribute to the generalizabilty of this work's findings.     

Können Unternehmen durch Cluster Wettbewerbsvorteile realisieren? Eine ressourcenbasierte Analyse des Uhrenclusters Glashütte

Single firms as parts of clusters are in the focus of this paper. They are analysed with regard to their contribution to the generation of firm- and cluster-specific competitive advantages. The resource-based view is extended to ensure applicability in cluster research. This approach serves as the basis for the analysis of a case study undertaken in 2008 in the watch cluster in Glashütte, Germany.     

Spilling the social capital beans: a comparative case study of coffee service enterprises within Asia-Pacific

Abstract

Despite the importance of social capital to organizational performance, there is scant insight within service contexts. Accordingly, this research explores social capital in two Asia-Pacific service enterprise cases – a Thai coffee franchise and a Coffee Roasters Guild in Australia. In the Thai case, social capital in the service experience emerged from norms common in Thai society and manifested via social enterprise initiatives. Findings from Australia indicate social capital helps form a strong organizational identity leading to better economic and social outcomes and an enhanced service experience, benefiting numerous stakeholders. The study demonstrates varying patterns of social capital in Asia-Pacific service enterprises, contributing to theory and practice.     

Perfect versus Imperfect Observability—An Experimental Test of Bagwell's Result

In a seminal paper Bagwell ((1995). Games Econom. Behav.8, 271–280) claims that the first mover advantage, i.e., the strategic benefit of committing oneself to an action before others can, vanishes completely if this action is only imperfectly observed by second movers. In our paper we report on an experimental test of this prediction. We implement four versions of a game similar to an example given by Bagwell, each time varying the quality of the signal which informs the second mover. For experienced players we do not find empirical support for Bagwell's result. Journal of Economic Literature Classification Numbers: C72, C92.