Income distribution and exchange in a dynamic search model

This paper studies the link between income distribution and trade mechanisms in a dynamic search model with two-sided asymmetric information. Buyers and sellers have imperfect information about the income levels of the other group. Furthermore, asymmetry of information about incomes is the source of price dispersion. In such a frictional environment, we capture the effects of a change in inter- and intra-class income distribution on the trade mechanism, which is represented by the expected trade volume and the flux of buyers and sellers in the market.     

A momentum trading strategy based on the low frequency component of the exchange rate

In this paper, we develop a momentum trading strategy based on the low frequency trend component of the spot exchange rate. Using kernel regression and the high-pass filter of Hodrick and Prescott [Hodrick, R., Prescott, E., 1997. Post-war US business cycles: An empirical investigation. Journal of Money, Credit and Banking 29, 1–16], we recover the non-linear trend in the monthly exchange rate and use short-term momentum in this to generate buy and sell signals. The low frequency momentum trading strategy offers greater directional accuracy, higher returns and Sharpe ratios, lower maximum drawdown and less frequent trading than traditional moving average rules. Moreover, unlike traditional moving average rules, the performance of the low frequency momentum trading strategy is relatively robust across different time periods. The low frequency momentum trading strategy is also robust to the choice of smoothing parameter (in the case of the HP filter) and the distribution and bandwidth parameter (in the case of kernel regression) over a wide range of values.     

Cognitive and affective constituents of the consumption experience in retail service settings: effects on store loyalty

Based largely on the recently growing experiential marketing stream, this study explores the joint effects of cognitive assessments of and emotional responses to service experiences on store loyalty in a retail service setting. Experience-related cognitions and store-related cognitions based on evaluations of the service experience, as well as the subsequent positive and negative emotional responses on the part of the customers, are modeled and investigated in terms of effects on store loyalty. Empirical data were collected through a survey of 518 consumers in four coffee shops of two major chains. The results suggest that consumer evaluations of the service experience and store environment may influence store loyalty, both directly and indirectly, through both negative and positive emotional arousals. The relative effects of each construct through different mechanisms are the primary research questions investigated in this study. Managerial implications and future research directions are also discussed.